Lily's Pastries produces cupcakes, which sell for $5.40 each. During the current month, Lily produced 3,200 cupcakes, but only sold 2,300 cupcakes. The variable cost per cupcake was $3.50 and the sales commission per cupcake was $0.90. Total fixed manufacturing costs were $1700 and total fixed marketing and administrative costs were $1,100. What is the product cost per cupcake under absorption costing? O A. $5.40 B. $4.03 C. $3.50 D. $5.93