During its first year of operations, Connor Company paid $25,000 for direct materials and $18,000 in wages for production workers. Lease payments and utilities on the production facilities amounted to $7,000. General, selling, and administrative expenses were $8,000. The company produced 5,000 units and sold 4,000 units for $15.00 a unit. The average cost to produce one unit is which of the following amounts?

$11.60

$8.00

$12.50

$10.00