Peters, Inc An Outside Supplier Has Offered to Produce the Cookies for Below

Multiple Choice

Peters, Inc.produces chocolate chip cookies.Costs for producing one batch appear below: $$\begin{array} { l l } \text { Direct materials } & \$8.00 \\\text { Direct labour } & 3.00 \\\text { Variable overhead } & 1.00 \\\text { Fixed overhead } & 4.00\end{array}$$ An outside supplier has offered to produce the cookies for $14 per batch.If Peters decides to buy instead of make the cookies, what is the maximum price it would pay?

A) $16.00
B) $12.00
C) $13.60
D) $14.40