Page 1 of 1
The Tires division of Car Company makes tires for use in its Assembly division. The Tires division incurs variable costs
Posted: Thu May 19, 2022 2:23 pm
by answerhappygod
- 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 96 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