Hometown Caf sells 30 dozen cupcakes each month. The costs associated with each dozen include $2.05 of direct materials, $2.75 of direct labor, and $1.45 of variable overhead. Monthly fixed overhead is $39. Bobs Baking Company has offered to sell the caf 30 dozen cupcakes per month. If Hometown accepts the offer, its fixed overhead costs would be reduced by 10%. What is the highest price Hometown would be willing to pay Bobs Baking Company per dozen cupcakes?

A :

$6.25

B :

$6.38

C :

$7.42

D :

$4.93