1 a) Pedregon Corporation has provided the following information:

	Cost per Unit	Cost per Period
Direct materials	$ 6.35
Direct labor	$ 3.75
Variable manufacturing overhead	$ 1.50
Fixed manufacturing overhead		$ 15,000
Sales commissions	$ 0.50
Variable administrative expense	$ 0.55
Fixed selling and administrative expense		$ 4,500

If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:

		$6.00
		$4.05
		$10.50
		$7.95

b)

At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The relevant range is 30,000 to 50,000 units.

If Lonnie were to sell 50,000 units, the total expected cost per unit would be: (Round intermediate calculations to 2 decimal places.)

		$2.50
		$2.00
		$2.30
		$2.20