The Northern Digital Inc. produces a high-quality computer chip. Unit production costs (based on capacity production of 100,000 units per year) follow:

Direct material	$50
Direct labor	20
Overhead (20% variable)	10
Other information:
Sales price	100
SG&A costs (40% variable)	15

Refer to Northern Digital, Inc. Assume, for this question only, that the Memory Division is operating at a level of 70,000 chips per year. What is the minimum price that the division would consider on a "special order" of 1,000 chips to be distributed through normal channels?

Select one:

a. $78

b. $81

c. $95

d. $100