A firm sells a product for a per unit price of $100. Variable costs per unit are $45.

A customer approaches the firm with a request for a special order of 1,000 units. This customer wants a discount because of the size of their order.

No special fixed cost purchases are required to complete the special order, but the firm has limited capacity for the special order. It only has excess capacity to produce 500 units of the special order.

What is the floor for the price that the firm negotiates with the customer?

	a.	$100 per unit
	b.	$55 per unit
	c.	$72.5 per unit
	d.	$45 per unit