The Tires division of Car Company makes tires for use in its Assembly division. The Tires division incurs variable costs

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The Tires division of Car Company makes tires for use in its Assembly division. The Tires division incurs variable costs

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The Tires Division Of Car Company Makes Tires For Use In Its Assembly Division The Tires Division Incurs Variable Costs 1
The Tires Division Of Car Company Makes Tires For Use In Its Assembly Division The Tires Division Incurs Variable Costs 1 (91.8 KiB) Viewed 94 times
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 0 $256 $150 $406
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