Pepper Corp. makes and sells a product that normally sells for $34. Because of a defectivemachine, 1,000 units were not produced correctly and remain in inventory. Each of the defectiveunit has the following costs assigned to it by the company's absorption costing system:

Direct materials$5.00 per unitDirect labor$3.00 per unitVariable Overhead$1 per unitFixed Overhead$1 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 maximum cost of repair per unit in order for the company to choose option (2)?

A) $per unit