Question: Question 2 1 pts Murphy Corporation is currently operating two different divisions: Water Bottle Division and Straw Division. Murphy Corporation wants the Water Bottle Division

Question 2 1 pts Murphy Corporation is currently operating two different divisions: Water Bottle Division and Straw Division. Murphy Corporation wants the Water Bottle Division to purchase their straws from the Straw Division. Currently, the Straw Division has variable costs per straw of $5, fixed costs per straw of $3 and sells the straws for $12. The Water Bottle Division purchases their straws from an outside supplier for $7. Murphy is requiring Water Bottle Division to purchase 10,000 straws from the Straw Division which only has excess capacity for 7.000 straws. What is the minimum transfer price that the Straw. Division should accept? O $6.5 O $5 $2.1 O $5.5 O $7.1

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