Aquamarine Company sells one of its products, Product X, for $50 each. Sales volume averages 5,000 units per year. Recently, its main competitor reduced the price of its product to $30. Aquamarine expects sales to drop dramatically unless it matches the price offered by its competitor. In addition, the current profit per unit must be maintained. Information about Product X (for production of 5,000 units) follows:

	Standard Quantity	Actual Quantity	Actual Cost
Materials (pounds)	8,500	10,000	25,000
Labor (hours)	2,000	2,500	12,000
Setups (hours)	0	2,000	4,000
Material handling (moves)	0	1,000	2,500
Warranties (number repaired)	0	500	8,000

The non-value-added cost per unit is (Round answer to two decimal places.):

a.$4.13.

b.$3.17.

c.$3.80.

d.$4.50