Star Appliance Manufactures a Variety of Appliances Which All Use

Star Appliance manufactures a variety of appliances which all use Part 92F.Currently,Star Appliance manufactures Part 92F itself.It has been producing 8,000 units of Part 92F annually.The annual costs of producing Part 92F at the level of 8,000 units include: $\begin{array}{|l|cc|}\hline \text { Direct materials } & \$ 4.00 \\\hline \text { Direct labor } & \$ 4.00 \\\hline \text { Variable manufacturing overhead } & \$ 6.00 \\\hline \text { Fixed manufacturing overhead } & \$ 3.00 \\\hline \text { Total cost } & \$ 21.00 \\\hline\end{array}$
All of the fixed manufacturing overhead costs would continue whether Part 92F is made internally or purchased from an outside supplier.Star Appliance has no alternative use for the manufacturing facilities.Roger Parts Company has offered to sell 8,000 units of Part 92F to Star Appliance for $22.00 per unit.
-What is the highest price per unit that Star Appliance should be willing to pay for the part?

A) $6
B) $21
C) $12
D) $18