Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations:

	Per Unit					Per Year
Selling price		$	200
Direct materials		$	75
Direct labor		$	50
Variable manufacturing overhead		$	10
Sales commission		$	8
Fixed manufacturing overhead						$	300,000

Using variable costing, what is the unit product cost for units produced during the second year of operations?

Multiple Choice

• $172.50

• $143.50

• $165.00

• $135.00