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Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.25 Direct labor $ 4.10 Variable manufacturing overhead $

Pedregon Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 7.25
Direct labor $ 4.10
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 20,900
Sales commissions $ 0.70
Variable administrative expense $ 0.80
Fixed selling and administrative expense $ 3,900

If the selling price is $21.90 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

  • $4.50

  • $6.60

  • $7.55

  • $10.55

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