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Pedregon Corporation has provided the following information: Cost per UnitCost per PeriodDirect materials$ 6.55 Direct labor$ 3.50 Variable manufacturing overhead$ 1.35 Fixed manufacturing overhead $

Pedregon Corporation has provided the following information:

Cost per UnitCost per PeriodDirect materials$ 6.55 Direct labor$ 3.50 Variable manufacturing overhead$ 1.35 Fixed manufacturing overhead $ 21,000Sales 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:

Multiple Choice

$3.85

$5.70

$7.95

$10.45

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