Save & Exit Subm WOMWNA858 Company manufactures 10,000 units of processor chip, A-118, each year for use on its production line. At this level of activity, the cost per unit of processor chip is: Direct materials $ 354 Direct labor 20 Variable manufacturing overhead Fixed manufacturing overhead 8 80 Total manufacturing cost per unit $ 462 (ID#70522) An outside supplier has offered to sell all units of processor chip the WOMWNA858 company requires. If the company decided to discontinue making processor chip, 25% of the above fixed manufacturing overhead costs could be avoided. The WOMWNA858 company could use the facilities presently devoted to the production of processor chip to increase production of another product by 2,500 units, which would vield additional contribution margin of $80,000 annually. Q: What is the maximum price the WOMWNA858 company would be willing to pay the outside supplier for processor chip? A: $ per unit