only need help with question 68!

Ahron Company makes 80,000 units per year of a part it uses in the products it manufacture product cost of this part is computed as follows: ses in the products it manufactures. The unit S14.90 12.50 Direct materials ....... Direct labor...... Variable manufacturing overhead Fived manufacturing overhead................... Unit product oost........ ... 21.1 $55.40 An outside supplier has offered to sell the company all of these parts it needs for S46.00 a unit company accepts this offer, the facilities now being used to make the art could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $560,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $13.60 of the fixed manufacturing overhead cost being applied to the part wou continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. 67. How much of the unit product cost of $55.40 is relevant in the decision of whether to make or buy the part? A. S34.30 B. $17.50 C. $55.40 D. $41.80 68. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 80,000 units required each year? A. $7.00 B. $62.40 C. $48.80 D. $55.40