Pedregon Corporation has provided the following information:

Cost per UnitCost per PeriodDirect materials$7.20Direct labor$4.00Variable manufacturing overhead$1.45Fixed manufacturing overhead$18,500Sales commissions$0.65Variable administrative expense$0.75Fixed selling and administrative expense$7,200

If the selling price is $21.80 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

• $4.05
• $5.45
• $7.75
• $10.60