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Cohasset Company currently manufactures all component parts used in the manufacture of various hand tools. A steel handle is used in three different tools. The

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Cohasset Company currently manufactures all component parts used in the manufacture of various hand tools. A steel handle is used in three different tools. The budget for these handles is 20,000 units with the following unit cost. Direct material 3 .60 Direct labor .40 Variable overhead . 10 Fixed overhead .20 Total unit cost $1 30 R & M Steel has offered to supply 20,000 units of the handle to Cohasset Company for $1.25 per unit. If Cohasset currently has idle capacity that cannot be used, accepting the offer will (CMA adapted) Select one: 0 decrease the handle unit cost by $.05. (W, increase the handle unit cost by $.15. 0 decrease the handle unit cost by $.15. (W increase the handle unit cost by $.05

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