Mad Cow Company manufactures a part for its production cycle.The costs per unit for 38,000 units of this part are as follows:

Direct materials$3

Direct labor5

Variable factory overhead4

Fixed factory overhead3

Total costs$15

The fixed factory overhead costs are unavoidable. Assuming no other use of their facilities, the highest price that Mad Cow Company should be willing to pay for the part is:

a.$12

b.$15

c.$8

d.$11