Anderson Co If Anderson Accepts the Order, $8 of Fixed Overhead Per

Multiple Choice

Anderson Co. makes and uses 5,000 components each year in its manufacturing operations. An outside supplier has offered to supply the components to Anderson at $66 per unit. Anderson's production costs are as follows:
$\begin{array}{|l|l|}\hline \text { Direct materials } & \$ 8 \\\hline \text { Direct labor } & 32 \\\hline \text { Variable overhead } & 12 \\\hline \text { Fixed overhead(based on normal capacity) } & 34 \\\hline\end{array}$
If Anderson accepts the order, $8 of fixed overhead per unit will be eliminated.
What is the relevant cost to produce one unit?

A) $86
B) $52
C) $78
D) $60