Oberley Products, Incorporated, Has a Receiver Division That Manufactures and Sells

Multiple Choice

Oberley Products, Incorporated, has a Receiver Division that manufactures and sells a number of products, including a standard receiver that could be used by another division in the company, the Industrial Products Division, in one of its products. Data concerning that receiver appear below: The Industrial Products Division is currently purchasing 5,000 of these receivers per year from an overseas supplier at a cost of $58 per receiver.What is the maximum price that the Industrial Products Division should be willing to pay for receivers transferred from the Receiver Division?

A) $52 per unit
B) $19 per unit
C) $58 per unit
D) $33 per unit