URGENT

JESSICA market assembles beautiful hanging flower baskets which they sell for $25 each. They make and sell 1,000 per season. The variable cost of the baskets is $13.50. Fixed costs are $2 per basket. SAM , a local flower supplier, has offered to supply the 1,000 hanging flower baskets that JESSICA's will need for the upcoming spring/summer season.

If JESSICA's decides to buy the flower baskets instead of making them, they could avoid 40% of the fixed cost per basket, but would still incur the other 60%.

What is the max price JESSICAs would be willing to pay for the baskets, to make it worthwhile to purchase them (meaning it would not be any more expensive to buy them than make them)?

a. $15.50

b. $13.50

c. $14.30

d. $14.70