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What is the highest acceptable transfer? price

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Gloucester 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 $ 65

Requirement 

Question 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 Gloucester Motors has a negotiated transfer price? policy, what is the lowest acceptable transfer? price? What is the highest acceptable transfer? price

Reference no: EM132577330

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