Brislin Gifts makes ceramic mugs and has the following amounts during 2014 (Assume the same unit costs in all months):

Selling price	$9.00 per mug
Variable production cost	$2.50 per mug
Variable selling cost	$1.10 per mug
Fixed production cost	$215,000 per month
Fixed selling and administrative cost	$60,000 per month

Production and sales in units for the first three months of 2014 are as follows:

Month

Production

Sales

January	50,000	44,000
February	40,000	45,000
March	50,000	45,000

Inventory at January 1, 2014 consisted of 1,000 mugs. How much is the inventory cost per unit under full costing during March?

A.	$6.80
B.	$3.60
C.	$7.90
D.	$9.10