The Hinges Division of Altoona Corporation sells 108,000 units of part Z-25 to the outside market. Part Z-25 sells for $96 and has a variable cost per unit of $50 and a fixed cost per unit of $10. The Hinges Division has a capacity to produce 170,000 units per period. The Door Division currently purchases 38,000 units of part Z-25 from the Hinges Division for $68. The Door Division has been approached by an outside supplier willing to supply the parts for $64. If Altoona uses a negotiated transfer pricing system, what is the maximum transfer price that should be charged for this transaction?

Multiple Choice

$68.

$64.

$60.

$50.