At the beginning of 2016, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products:

Theoretical annual capacity	3,500
Actual production	1,800
Production hours available	700
Actual conversion cost per hour	$10

What is the ideal conversion cost per unit?

a. $2.00 per unit.

b. $29.10 per unit.

c. $1.02 per unit.

d. $32 per unit.