Stokan Products, Inc., has a Antennae Division that manufactures and sells a number of products, including a standard antennae that could be used by another division in the company, the Aircraft Products Division, in one of its products. Data concerning that antennae appear below: Capacity in units 86,000Selling price to outside customers$63Variable cost per unit$22Fixed cost per unit (based on capacity)$18?The Aircraft Products Division is currently purchasing 5,000 of these antennaes per year from an overseas supplier at a cost of $57 per antennae.?What is the maximum price that the Aircraft Products Division should be willing to pay for antennaes transferred from the Antennae Division?
A. $18 per unit
B. $22 per unit
C. $40 per unit
D. $57 per unit
Answer: D
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