Younes Inc. manufactures industrial componentes. One of its products, which is used in the construction of industrial air conditioners, is known as P06. Data concerning this product are given below:

Per Unit

Selling price220

Direct materials 38

Direct Labor 1

Variable manufacturing overhead 8

Fixed manufacturing overhead 16

Variable selling expense 4

Fixed selling and administrative expense 16

The above per unit data are based on anual production of 4,000 units of the componente. Assume that direct labor is a variable cost.

The company has received a special, one-time-only order for 400 units of componente P06. The total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assume that Younes has excesso capacity and can fill the order without cutting back on the production of any product.

What is the minimum price per unit below which the company should not accept the special order?

A)$47 per unit

B)$220 per unit

C)$51 per unit

D)$83 per unit