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Grand Limited currently produces a component of a product with the following per unit production costs Direct materials Direct labour $19.66 30.34 18.76 68.76 t

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Grand Limited currently produces a component of a product with the following per unit production costs Direct materials Direct labour $19.66 30.34 18.76 68.76 t of Total production costs estion Grand Ltd. currently manufactures these components in-house, averaging production of 28210 units each year. A supplier has approach the company offering to supply 28210 units each year at a cost of $51.26 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 t hat Grand shoul d pay per unit for the component? Select one: a. $61.26 O b. $68.76 . $56.25 d. $57.50 Check

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