Grand Limited currently produces a component of a product with the following per unit production costs:

Direct materials	$19.35
Direct labour	33.36
Overhead	20.88
Total production costs	$73.59

Grand Ltd. currently manufactures these components in-house, averaging production of 29685 units each year. A supplier has approach the company offering to supply 29685 units each year at a cost of $54.18 each.

60% of the overhead is fixed and if Grand Ltd. purchases the components, then 1/3 of the fixed overhead costs would be avoidable.

What is the maximum price that Grand should pay per unit for the component?

Select one:

a. $73.59

b. $65.24

c. $59.67

d. $61.06