Curly Inc. is considering whether to continue to make a component called "X-31" or to buy it from an outside supplier. The company uses 15,000 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $7.25 $7.13 $1.62 $3.40 (calculated from the 15,000 units) $19.40 Assume that direct labor is a variable cost. of fixed manufacturing overhead, 3-% is avoidable if the component were bought from the outside supplier. In addition, making one component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, this machine time would be freed up for use on other products of which the company has two chices as follows: Product A-1 Product B-2 Minutes required from the constraining machine per unit 4 Contribution margin per unit $3.50 $10.20 Assume that there are huge demand for both Product A-1 and Product B-2 (i.e., all of the units of Product A-1 and Product B-2 produced can be sold). When deciding whether to make or buy the component, what is the maximum price the company would pay if it decides to buy? A. $18.77 B. $22.12 C. $24.02 D. $26.40 E. $29.12