1. Eriksens Danish Delights produces Giant Aebleskivers, a famous Danish dessert. Eriksens became immensely popular with singer Kellie Pickler, and she wants some for an upcoming birthday on June 28^th, requesting a special order. Please note the following:

• Produces at capacity, producing 200,000 Aebleskivers
• Currently selling 180,000 Aebleskivers to regular customers
• Aebleskivers are sold at $5.50 each
• Kellie wants to buy 60,000 Aebleskivers for a massive birthday party
• Eriksens has the current costs for its Aebleskivers:

Ingredients	$1.20
Direct Labor	$0.60
Boxing	$0.20
Labeling	$0.10
Distribution	$0.40
Total Variable Costs	$2.50
Allocated Fixed OH	$0.50
Allocated S&A	$0.40
Total Unit Cost	$3.40

Kellie noted she will pick up the Aebleskivers without need for labeling or boxing, so the Boxing, Labeling, and Distribution variable costs can be avoided by Eriksens.

What is the Minimum Required Selling Price required for Eriksens to accept the Special Order?

A. $4.50

B. $4.25

C. $4.00

D. $3.80

E. $3.50