During its first year of operations, Beta Company paid $31,750 for direct materials and $18,500 in wages for production workers. Lease payments and utilities on the production facilities amounted to $7,500. General, selling, and administrative expenses were $8,500. The company produced 5,500 units and sold 4,500 units for $15.50 a unit. The average cost to produce one unit is which of the following amounts? (Round your final answer to 2 decimal places.)
A. $12.83
B. $8.72
C. $10.50
D. $12.05