Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials $86,000 Direct labor 130,000 Variable factory overhead 57,000 Fixed factory overhead 135,000 Total costs $408,000 Of the fixed factory overhead costs, $58,000 is avoidable. Assuming no other use of their facilities, the highest price that McMurphy should be willing to pay for 12,000 units of the part is ________.

A. $331,000 B. $408,000 C. $273,000 D. $351,000