Stokan Products, Inc., 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 86,000 Selling price to outside customers $ 63 Variable cost per unit $ 22 Fixed cost per unit (based on capacity) $ 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
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Stokan Products, Inc., has a Antennae Division that manufactures and sells a number of products, inc...
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