A manufacturer operating with excess capacity has been asked to fill a special order at a selling price of $8.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.50 for direct labor, $1.00 for variable overhead, and $0.75 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.85. Under the general decision rule, the minimum price per unit for this special order is

A. $7.75

B. $7.50

C. $7.85

D. $7.00