TB MC Qu. 24-156 (Static) The Tires division of... The Tires division of Car Company makes tires for use in its Assembly division. The Tires division incurs variable costs of $250 per set of tires and has the capacity to make 1,000,000 sets of tires per year. The market price for tires is $400 per set. The Tires division incurs total fixed costs of $6,000,000 per year. If the Tires division is operating at full capacity, what transfer price should be used on the transfers between the Tires and Assembly divisions? Multiple Choice $250 $400 $256 $150 $406