Ahart Products, Incorporated, Has a Transmitter Division That Manufactures and Sells

Ahart Products, Incorporated, has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter that could be used by another division in the company, the Remote Devices Division, in one of its products. Data concerning that transmitter appear below: The Remote Devices Division is currently purchasing 4,000 of these transmitters per year from an overseas supplier at a cost of $59 per transmitter.What is the maximum price that the Remote Devices Division should be willing to pay for transmitters transferred from the Transmitter Division?

A) $8 per unit
B) $50 per unit
C) $59 per unit
D) $42 per unit

Correct Answer:

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