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The Cumberland 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

The Cumberland 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 Cumberland?

a.$0.85

b.$0.40

c.$0.75

d.$1.25

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