1. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000.

   Fixed factory overhead cost	$105,000
   Fixed selling and administrative costs	35,000
   Variable direct materials cost per unit	4.34
   Variable direct labor cost per unit	5.18
   Variable factory overhead cost per unit	0.98
   Variable selling and administrative cost per unit	0.70

   The variable cost per unit for the production and sale of the company's product is

   a.$12.60

   b.$11.20

   c.$14.00

   d.$9.80