olive corp currently makes 20,000 sub components a year in one of its factories. the unit costs produced are: Direct materials: $12, Direct labor: 8, Var. manufacturing overhead: 12, fixed manuf. overhead: 8, total unit costs: $40. An outside supplier has offered to provide olive corp with the 20,000 subcom. at a $36 per unit price. fixed overhead is not avoidable. what is the maximum price olive corp should pay to the outside supplier Solution Per unit Direct materials $12.00 Direct labor $8.00 Var. manufacturing overhead $12.00 Total variable cost $32.00 Total fixed cost $8.00 Total unit cost $40.00 Maximum price olive corp should pay $32.00 (variable cost) .