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TB MC Qu. 4.72 (Algo) The Tire Division of Traker Company produces... The Tire Division...

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TB MC Qu. 4.72 (Algo) The Tire Division of Traker Company produces... The Tire Division of Traker Company produces tires for off-road sport vehicles. One-third of Tire's output is sold to an internal division of Traker, the remainder is sold to outside customers. Tire's estimated operating profit for the year is: Sales Variable costs Fixed costs Operating profits Unit sales Internal $279,000 208,800 38,000 $ 32,200 11,600 Outside $464,000 417,600 76,000 $-29,600 23,200 The Internal division has an opportunity to purchase 11.600 tires of the same quality from an outside supplier on a continuing basis. The Tire Division cannot sell any additional products to outside customers. What is the minimum selling price that Tire should accept from the Internal division? Multiple Choice $18.00 $2100 The internal division has an opportunity to purchase 11,600 tires of the same quality from an outs cannot sell any additional products to outside customers. What is the minimum selling price that Multiple Choice $18.00 $21.00 $90.00 $23.00

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