Cichy Products, Incorporated, 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:

Capacity in units	80,000
Selling price to outside customers	$ 90
Variable cost per unit	$ 37
Fixed cost per unit (based on capacity)	$ 32

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?Multiple Choice

• $37 per unit

• $85 per unit

• $32 per unit

• $69 per unit