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

Direct materials	$20.56
Direct labour	32.68
Overhead	18.53
Total production costs	$71.77

Grand Ltd. currently manufactures these components in-house, averaging production of 30668 units each year. A supplier has approach the company offering to supply 30668 units each year at a cost of $52.51 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. $60.65

b. $64.36

c. $71.77

d. $59.42