You have been provided with the following information for Division X of a decentralized company:

Selling price	$	80
Variable cost per unit		53
Fixed cost per unit		24
Sales volume (units)		23,400
Capacity (units)		26,200

Division Y of the same company would like to purchase all of its units internally. Division Y needs 8,400 units each period and currently pays $74 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y? (Assume that Division Y wants to use a sole supplier and will notpurchase less than 8,400 from a supplier.)

• $80.

• $74.

• $71.

• $53.