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Given the following information for Camping Division: Selling price to outside customers $ 45 Variable cost per unit $ 27 Total fixed costs $ 600,000

Given the following information for Camping Division:

Selling price to outside customers $ 45
Variable cost per unit $ 27
Total fixed costs $ 600,000
Capacity in units 30,000

The Lantern Division would like to purchase internally from the Camping Division. The Lantern Division now purchases 5,700 units each period from outside suppliers at $44 per unit. The Camping Division has ample excess capacity to handle all of the Lantern Division's needs. What is the lowest price that Camping Division could accept?

$45.

$44.

$47.

$27.

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