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: 
If Anderson accepts the order, $8 of fixed overhead per unit will be eliminated.
What is the relevant cost to produce one unit?
Definitions:
Content Validity
The extent to which a test measures all aspects of the concept or construct it intends to assess.
Reliability
The degree to which an assessment tool produces stable and consistent results over multiple administrations.
Heritability
A measure of how much of the variation in a trait among individuals within a population is due to genetic factors.
Factor Analysis
A statistical approach for expressing the differences among observed, interrelated variables by means of fewer, not directly observed variables, referred to as factors.
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