The selling price of a unit is $20 and the variable product cost per unit is $14. In addition, a sales commission of 5% is paid on each sale. If the variable cost per unit (excluding sales commission)) increases by 1%, what is the new total cost per unit?

Question 4 options:

1)

$14.84

2)

$14.85

3)

$14.90

4)

$15.14