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Martin Company currently manufactures ell component parts used in the manufacture of various hand tools. The Extruding Division produces a steel handle used in three
Martin Company currently manufactures ell component parts used in the manufacture of various hand tools. The Extruding Division produces a steel handle used in three different tools. The budget for these handles is 131,000 units with the following unit cost 082 0.51 0.43 0.42 Direct material Direct labor Variable overhead Fixed overhead 5228 Polishing Division purchases 10,000 handles from the Extruding Division and completes the hand tools An outside supplier, Venture Steel, hes offered to supply 10.000 units of the hande to Polishing Division for $2.13 per unit. The Extruding Division currently hes idie capacity that cannot be used If Martin would like to develop a renge of transfer prices, whet would be the minimum trensfer price that Extruding would be willing to accept? $133. O $1.76 O $2.18
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