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Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.95 Direct labor $ 3.50 Variable manufacturing overhead $

Pedregon Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 6.95
Direct labor $ 3.50
Variable manufacturing overhead $ 1.75
Fixed manufacturing overhead $ 19,800
Sales commissions $ 0.40
Variable administrative expense $ 0.50
Fixed selling and administrative expense $ 7,700

If the selling price is $21.30 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

  • $3.80

  • $4.70

  • $8.20

  • $10.85

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