The following information relates to a product produced by Marigold Company:

Direct materials $20

Direct labor 10

Variable overhead 20

Fixed overhead 15

Unit cost $65

Fixed selling costs are $650,000 per year, and variable selling costs are $10 per unit sold. Although production capacity is 400,000 units per year, the company expects to produce only 250,000 units next year. The product normally sells for $100 each. A customer has offered to buy 40,000 units for $80 each.

The incremental cost per unit associated with the special order is:

a. $76.

b. $60.

c. $90.

d. $84.