Q 4:18

Goldsmith Processors produces two joint products from a special type of ore. Product X-1 sells for $8 per unit at the split-off point. After an additional $90,000 of processing costs are incurred, product X2 selis for $25 per unit. In a typical period, 90,000 units of ore are processed; 72,000 units become product X1 and 18,000 units become product X-2. The joint process has only variable costs. In a typical period, the conversion costs of the joint products amount to $243,000. Materials prices for the ore are volatile, and if prices are too high, the company stops production. The company uses the physical quantities method to allocate joint costs to the main products. The management at Goldsmith is trying to determine the maximum per-unit price that the company should pay for the ore. Required: a. Calculate the maximum price, per unit, that Goldsmith should pay for the ore. Note: Round your answer to 2 decimal places