Catan Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,200 units, are as follows:

Direct materials	$4.40
Direct labor	$4.00
Variable manufacturing overhead	$3.50
Fixed manufacturing overhead	$1.00
Total cost	$12.90
The fixed overhead costs are unavoidable.

Assuming no other use for its facilities, what is the highest price per unit that Catan Company should pay for the part?

		$11.90
		$12.90
		$5.40
		$8.40