Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently, Lasso manufactures Part B89 itself. It has been producing 9000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 9000 units include:

Direct materials	$3.10
Direct labor	$8.40
Variable manufacturing overhead	$4.20
Fixed manufacturing overhead	$3.00
Total cost	$18.70

All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Lasso has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9000 units of Part B89 to Lassof or $20.40 per unit. What is the highest price per unit that Lasso should be willing to pay for the part?

		$7.30
		$15.70
		$18.70
		$11.50