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Cotton Corp. currently makes 9,100 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $22.00 Direct

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Cotton Corp. currently makes 9,100 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $22.00 Direct labor 24.00 Variable manufacturing overhead 15.00 Fixed manufacturing overhead 10.00 Total unit cost $71.00 An outside supplier has offered to provide Cotton Corp. with the 9,100 subcomponents at an $89.00 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier

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