Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 8,000 units and of Product B are 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

Activity cost level: Est, Cost Expected Activity

Product A Product B Total

Activity 1 $20,000 100 400 500

Activity 2 $37,000 800 200 1,000

Activity 3 $91,200 800 3,000 3,800

The cost per unit of Product A under activity-based costing is closest to:

Question options:

$2.40.

$3.90.

$6.60.

$10.59.