MC, Inc., produces ravioli, tortellini, and other cheese-filled pastas. Each unit of pasta contains 0.5 ounce of filling. Management estimates that MC will use 10,000 pounds of cheese filling each month. The costs associated with each pound of filling consist of $5.32 direct materials, $7.48 direct labor, $7.30 variable overhead, and $6.50 unavoidable fixed overhead. Pasta Specialties has offered to supply 10,000 pounds of cheese filling each month for $202,600. What is MCs relevant cost per pound of cheese filling when considering whether to outsource production?

A :

$19.30 per pound.

B :

$20.26 per pound.

C :

$20.10 per pound.

D :

$26.60 per pound.