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Peggy Company makes and sells a product that normally sells for $57. Because of a defective machine, 1,000 units were not produced correctly and remain

Peggy Company makes and sells a product that normally sells for $57. Because of a defective machine, 1,000 units were not produced correctly and remain in inventory. Each of the defective unit has the following costs assigned to it by the company's absorption costing system:

Direct materials $6.00 per unit
Direct labor $2.00 per unit
Variable Overhead $1.75 per unit
Fixed Overhead $1.8 per unit

The company has two options regarding the defective units: (1) be sold for $8 per unit, or (2) repaired and sold at the regular price.

Q:) What is the minimum cost of repair per unit in order for the company to choose option (1)?

A:) $ _______per unit?

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