23. The budgeted income for RST Ltd. for next year is as follows:

Sales 125,000 units @ $40 $5,000,000 Variable manufacturing costs $2,000,000 Fixed manufacturing costs 1,250,000 Sales commissions - $2.60 per unit 325,000 Fixed selling and administration expenses 950,000 4,525,000 Operating income $ 475,000

Assume that a regular customer has requested RST Ltd. to provide a quote for a special order of 20,000 units. RST Ltd. has sufficient capacity to fill the order and would be required to pay only $8,000 in sales commissions for the order. If RST Ltd. would like the special order to make a contribution to operating income of $48,000, the sales price per unit that should be quoted to the customer for the special order is

a) $40.00.

b) $20.20.

c) $28.80.

d) $36.40.

e) $18.80.