Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials		$	32.50
Direct labor			13.00
Variable manufacturing overhead			19.50
Fixed manufacturing overhead			26.00
Total unit cost		$	91.00

An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $84.50 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier?

a) $91.00

b) $65.00

c) $84.50

d) $58.50