Cichy Products,Inc

Multiple Choice

Cichy Products,Inc.,has a Valve Division that manufactures and sells a number of products,including a standard valve that could be used by another division in the company,the Pump Division,in one of its products.Data concerning that valve appear below:
The Pump Division is currently purchasing 5,000 of these valves per year from an overseas supplier at a cost of $85 per valve.
What is the maximum price that the Pump Division should be willing to pay for valves transferred from the Valve Division?

A) $37 per unit
B) $85 per unit
C) $32 per unit
D) $69 per unit