Note: This question is answered in the Required Homework Reading relating to Relevant Costs in Chapter B5. Choice "C" is correct. The lowest unit price that Rodder should accept is the variable cost of producing the router ($3 + $3 + $3$9) plus the $5,000 contribution margin on a unit basis ($5,000 / 1,000$5) of the alternative use for the production capacity. The total of these amounts is $14 [$3 + $3 + $3 + $5$14].Choice "d" is incorrect. The lowest unit price that Rodder should accept is the variable cost of producing the router ($3 + $3 + $3$9) plus the $5,000 contribution margin on a unit basis ($5,000 / 1,000$5) of the alternative use for the production capacity, not just the variable cost ($9) of producing the router.Choice "a" is incorrect. The lowest unit price that Rodder should accept is the variable cost of producing the router ($3 + $3 + $3$9) plus the $5,000 contribution margin on a unit basis ($5,000 / 1,000$5) of the alternative use for the production capacity, not the variable and fixed cost ($9 + $2 + $1$12) of producing the router.Choice "b" is incorrect. The lowest unit price that Rodder should accept is the variable cost of producing the router ($3 + $3 + $3$9) plus the $5,000 contribution margin on a unit basis ($5,000 / 1,000$5) of the alternative use for the production capacity, not the variable cost and selling price ($9 + $15$24) of producing the router.