Current production volume = 20,000 units. However, theoretical capacity = 25,000 units. the company is using the current production volume as practical capacity. Furthermore, practical capacity serves as the denominator volume cost estimation. Consider the following costs: Direct material: $240,000, direct labor: $160,000, variable overhead: $5.00 per unit, Traceable fixed overhead: $6.00 per unit, and allocated fixed overhead: $20,000. Compute per unit average cost of production.

A. $11.00

B. $20.00

C. $32.80

D. None of the above are correct