Rambling Rose Corporation produces two joint products from its manufacturing operation. Product J sells for $4 1.50 per unit, while product M sells for $12 per unit at the split-off point. In a typical month, 19,000 units are processed. Fifteen thousand units become Product M. Four thousand units become product J after an additional

$56,250 of processing costs are incurred.

The joint process has only variable costs; no fixed costs. In a typical month, the conversion costs amount to $114,075. Materials prices are volatile, and if prices are too high, the company will stop production.

What is the maximum price the company should pay for the materials?