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Stokan Products, Incorporated, has a Antennae Division that manufactures and sells a number of products, including a standard antennae that could be used by another
Stokan Products, Incorporated, has a Antennae Division that manufactures and sells a number of products, including a standard antennae that could be used by another division in the company, the Aircraft Products Division, in one of its products. Data concerning that antennae appear below: Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 86,000 $ 63 $ 22 $ 18 The Aircraft Products Division is currently purchasing 5,000 of these antennaes per year from an overseas supplier at a cost of $57 per antennae. What is the maximum price that the Aircraft Products Division should be willing to pay for antennaes transferred from the Antennae Division? Multiple Choice $22 per unit O $57 per unit O $18 per unit $40 per unit
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