Royal Products, Incorporated, has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below:

Capacity in units	66,000
Selling price to outside customers	$ 69
Variable cost per unit	$ 21
Fixed cost per unit (based on capacity)	$ 35

The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector.

What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division?

Multiple Choice

$35 per unit

$65 per unit

$56 per unit

$21 per unit