A company produces a product that contains 9 ounces of materials in each unit of finished goods.

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Question:

A company produces a product that contains 9 ounces of materials in each unit of finished goods. During the production process, 4% of the materials evaporate. The company pays its suppliers $2 per ounce; the cost to ship the material to the company averages $0.20 per ounce. The standard dollar amount of raw materials contained in one unit of finished goods is
A. $20.63
B. $19.80
C. $20.59
D. $18.75