Macy Corporation's relevant range of activity is 8,400 units to 17,000 units. When it produces and sells 12,700 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	5.55
Direct labor	$	4.00
Variable manufacturing overhead	$	2.00
Fixed manufacturing overhead	$	3.60
Fixed selling expense	$	1.30
Fixed administrative expense	$	0.60
Sales commissions	$	1.25
Variable administrative expense	$	0.50

If the selling price is $32.50 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

• $19.20

• $11.55

• $22.95

• $7.35