$4.70 Caracas Products manufactures 18,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is Direct materials 6.00 Variable manufacturing overhead Fixed manufacturing overhead Direct labor 3.20 12.00 $25.90 An outside supplier has offered to sell 18,000 units of part 5-6 cach year to Caracas Products for $48.00 per part. If Caracas Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $436,800. However, Caracas Products has determined that if part S-6 were purchased from the outside supplier, they would no longer need the production manager, who is paid $96,000 per year. In addition they can reduce the number of special quality- monitoring machines from five to three. These machines are leased annually for $24,000 per machine. 17 What would be the maximum price per unit Caracas is willing pay to the outside supplier for S-6? A $46.17 B. $47.50 C. $59.17 D. $60.50 E. None of the above