Zeilinger Products, Inc., has a Screen Division that manufactures and sells a number of products, including a standard screen that could be used by another division in the company, the Home Security Division, in one of its products. Data concerning that screen appear below: Capacity in units 40,000Selling price to outside customers$65Variable cost per unit$28Fixed cost per unit (based on capacity)$26?The Home Security Division is currently purchasing 8,000 of these screens per year from an overseas supplier at a cost of $58 per screen.?What is the maximum price that the Home Security Division should be willing to pay for screens transferred from the Screen Division?
A. $26 per unit
B. $28 per unit
C. $58 per unit
D. $54 per unit
Answer: C
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