Kent Company manufactures a product that sells for $62.00 and has variable costs of $36.00 per unit. Fixed costs are $299,000. Kent can buy a new production machine that will increase fixed costs by $13,000 per year, but will decrease variable costs by $4.00 per unit. Compute the contribution margin per unit if the machine is purchased.

Multiple Choice

$22.00.

$40.00.

$35.00.

$30.00.

$26.00.