Lucas Inc. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials	$10
Direct labour	8
Variable manufacturing overhead	12
Fixed manufacturing overhead	10
Total unit cost	$40

An outside supplier has offered to provide Lucas Inc. with the 20,000 subcomponents at a $35 per unit price. Fixed overhead is not avoidable. What is the maximum price Lucas Inc. should pay the outside supplier?

	A.	$32
	B.	$35
	C.	$30
	D.	$40