Rogers Products Ltd. produces a single product. The following is a summary of the cost to produce one unit:

Cost per unit

Direct materials $ 15.00

Direct labour 10.00

Variable overhead 7.50

Variable selling expenses 6.25

Fixed overhead 1.00

Total cost $ 39.75

The fixed overhead cost of $1 per unit is based on the expected production of 25,000 units. If more than 25,000 units are produced, Quentin will incur an additional $125,000 of fixed overhead costs. Fixed selling and administrative expense is $50,000, regardless of the number of units sold. Quentin expects to sell 18,000 units in the coming year.

Quentin has been invited to bid on a contract to supply a special order of 10,000 units. Quentin expects to incur only $1 per unit in variable selling expenses to fill the special order; all other variable costs will remain unchanged. The 10,000 units will be added to Quentin's regular production schedule. What is the acceptableminimumprice that Quentin should bid?

a) $33.50 b) $45.00 c) $46.00 d) $51.25