A companys relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are follows:

Direct materials. $8.25

Direct labor. $5.25

Variable manufacturing overhead $1.50

Fixed manufacturing overhead $5.00

Fixed selling expense $3.50

Fixed administrative expense $2.00

Sales commissions $1.00

Variable administrative expense $0.50

What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units?

A. $15.00

B. $20.00

C. 21.50

D. 27.00