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Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.55 Direct labor $ 3.50 Variable manufacturing overhead $

Pedregon Corporation has provided the following information:



Cost per Unit


Cost per Period

Direct materials

$

6.55




Direct labor

$

3.50




Variable manufacturing overhead

$

1.35




Fixed manufacturing overhead




$

21,000

Sales commissions

$

0.55




Variable administrative expense

$

0.60




Fixed selling and administrative expense




$

6,300


If the selling price is $20.50 per unit, the contribution margin per unit sold is closest to:

a. $4.45

b. $5.60

c. $7.95

d. $10.45

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