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Zeilinger Products, Inc., has a Screen Division that manufactures and sells a number of products,...

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Accounting

Zeilinger Products, Inc., has a Screen Division that manufactures and sells a number of products, including a standard screen that could be used by another division in the company, the Home Security Division, in one of its products. Data concerning that screen appear below:

Capacity in units 40,000
Selling price to outside customers $ 65
Variable cost per unit $ 28
Fixed cost per unit (based on capacity) $ 26

The Home Security Division is currently purchasing 8,000 of these screens per year from an overseas supplier at a cost of $58 per screen.

What is the maximum price that the Home Security Division should be willing to pay for screens transferred from the Screen Division?

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