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

Direct materials $6

Direct labor 5

Variable factory overhead 4

Fixed factory overhead 4

Total costs $19

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

a. $12

b. $16

c. $8

d. $15