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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

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:

Capacity in units 47,000
Selling price to outside customers $ 67
Variable cost per unit $ 33
Fixed cost per unit (based on capacity) $ 19

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?

Multiple Choice

$52 per unit

$19 per unit

$58 per unit

$33 per unit

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