b My Grade CISA Secure Do Homework Corey Gray Google Ch

b My Grade: * CISA € ? Secure Do Homework - Corey Gray - Google Chrome x https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld=4852799688 questionid=1&flushed;=false&cd;=5034031&centerwin;=yes Secure Chegg ACC 203 - Summer 2018 (1) Corey Gray & 6/21/18 7:30 PM Homework: Chapter 10 Homework - Required Save home / study/business Score: 0 of 1 pt 3 of 3 (1 complete) HW Score: 15%, 0.75 of 5 pts ? Your E10-24A (similar to) Question Help We\'ll not ough Griffin Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per tire is $90. The Tire Division has the following costs per tire A (Click the icon to view the costs and additional information.) Read the requirements 0 Next time scanning Requirement 1. Assume that the Tire Division has excess capacity, meaning that it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Griffin Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? (Assume the $3 includes only the variable portion of conversion costs.) Question: The lowest acceptable transfer price is $ the Tire Division\'s O du € > MLG * ganata CAME Secure Solutions Hom Choose from any list or enter any number in the input fields and then click Check Answer Score: Managerial Accounting S10-12 by Che The too 4 parts 4 remaining Check Answer Clear All anageria... 1. How rury pechdid S t ay would n pril 4th Edition 4th Edition 4th Edition e o ? 1 Op g - 0 10 € 7 :31 PM 6 /21/2018

Solution

Calculation of lowest acceptable transfer price

Direct Material Cost per Tire

15

Conversion Cost

3

Total Relevant Cost

18

Minimum Transfer Price would be Total Variable cost and that is $ 18 per Unit

Note* It is given in question that Division has excess capacity that means it will not lose any contribution is tire is transferred to Truck Division and that is why Loss of Contribution is not considered to determine Lowest transfer price.

Calculation of Highest Acceptable Transfer Price

Sale Price

90

Price from Outside Market

Not Provided

The Highest Acceptable Transfer price is always the price at which company can but the product from Outside or the in-house price of Product whichever is lower.

Highest Acceptable Transfer Price in this Case would be Sale price that is $90 Per Unit.

Calculation of lowest acceptable transfer price
Direct Material Cost per Tire	15
Conversion Cost	3
Total Relevant Cost	18
Minimum Transfer Price would be Total Variable cost and that is $ 18 per Unit
Note* It is given in question that Division has excess capacity that means it will not lose any contribution is tire is transferred to Truck Division and that is why Loss of Contribution is not considered to determine Lowest transfer price.
Calculation of Highest Acceptable Transfer Price
Sale Price	90
Price from Outside Market	Not Provided
The Highest Acceptable Transfer price is always the price at which company can but the product from Outside or the in-house price of Product whichever is lower.
Highest Acceptable Transfer Price in this Case would be Sale price that is $90 Per Unit.