Jenna's Farm Market assembles beautiful hanging flower baskets that they sell for $25 each. They make and sell 1,000 per season. The variable cost of the baskets is $13.50. Fixed costs are $2 per basket. Assorted Growers, a local flower supplier, has offered to supply the 1,000 hanging flower baskets that Jenna's will need for the upcoming spring/summer season. If Jenna's decides to buy the flower baskets instead of making them, they could avoid 40% of the fixed cost per basket, but would still incur the other 60%.

Suppose that Jennas can use the facility that is normally used for flower baskets to assemble a different product that can provide a contribution margin of $2,500. What is the maximum price Jennas would be willing to pay for each basket?

		$14.3
		$14.70
		$16.8
		$11.8