Stokan Products, Incorporated, Has a Antennae Division That Manufactures and Sells

Multiple Choice

Stokan Products, Incorporated, 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: 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) $22 per unit
B) $57 per unit
C) $18 per unit
D) $40 per unit