20.

Peggy Company makes and sells a product that normally sells for $52. Because of a defective machine, 1,000 units were not produced correctly and remain in inventory. Each of the defective unit has the following costs assigned to it by the company's absorption costing system:

Direct materials	$6.00 per unit
Direct labor	$2.00 per unit
Variable Overhead	$2.25 per unit
Fixed Overhead	$1 per unit

The company has two options regarding the defective units: (1) be sold for $8 per unit, or (2) repaired and sold at the regular price.

(Q.) What is the minimum cost of repair per unit in order for the company to choose option (1)?