The summit company makes a single product called a hom. The company has the capacity to produce 40,000 Hom's a year. Per unit costs to product one Hom are:

Direct materials $20

Direct Labor $10

Variable Manufacturing Overhead $5

Fixed Manufacturing Overhead $7

Variable Selling expenses $8

Fixed Selling expenses $2

The regular selling price for one Hom is $60. A special order has been received from the Fairfield company to purchase 8,000 Hom's next year. For this special order, the variable selling and administrative expsenses would be reduced by 25%. However summit would have to purchase a special machine to engrave Fairfield name on each Hom. This machine would cost $12,000 and have no use after the special order was filled.

If summit can expect to sell 34,000 units next year, at what special order price from Fairfeld should summit be economically indifferent between either accepting or not accepting this offer?

A. $51

B. $48.20

C. $42.50

D. $39.60

E. $46.75

Please show all work.