Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:

Direct materials	$	170,000
Direct labor	$	110,000
Variable manufacturing overhead	$	200,000
Fixed manufacturing overhead	$	240,000

Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.

The contribution margin per unit was:

		$23.80 per unit
		$31.00 per unit
		$25.60 per unit
		$19.00 per unit