Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials		$	12
Direct labor			8
Variable manufacturing overhead			12
Fixed manufacturing overhead			8
Total unit cost		$	40

An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. What is the maximum price Olive Corp. should pay the outside supplier?

$32

$36

$40

$44