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The Bathtub Division of Kirk Plumbing Corporation has recently approached the Faucet Division with a proposal. The Bathtub Division would like to make a special

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The Bathtub Division of Kirk Plumbing Corporation has recently approached the Faucet Division with a proposal. The Bathtub Division would like to make a special "ivory" tub with gold-plated fixtures for the company's 50-year anniversary. It would make only 4,900 of these units. It would like the Faucet Division to make the fixtures and provide them to the Bathtub Division at a transfer price of $170. If sold externally, the estimated variable cost per unit would be $130. However, by selling internally, the Faucet Division would save $10 per unit on variable selling expenses. The Faucet Division is currently operating at full capacity. Its standard unit sells for $44 per unit and has variable costs of $25. Compute the minimum transfer price that the Faucet Division should be willing to accept. Minimum transfer price Should they accept this offer? They this offer. eTextbook and Media Save for Later Attempts: 0 of 5 used Submit

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