Last year, fixed manufacturing overhead costs were $30,000, variable production costs were $54,000, fixed selling and administration costs were $20,000, and variable selling and administrative expenses were $12,000. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of $40 per unit. Under absorption costing, what is the unit cost?

Multiple Choice

• $32.50

• $35.

• $30.50

• $28