The Cabbage Company provides the following information:

Sales (250,000 units): $625,000

Manufacturing costs:

Variable: $212,500

Fixed: $37,500

Selling and administrative costs:

Variable: 100,000

Fixed: 25,000

What is the variable cost per unit for Cabbage? a.

$1.25 b.

$0.75 c.

$0.85 d.

$0.40