Tiger Pride produces two product lines:

Tminusshirts

and Sweatshirts. Product profitability is analyzed as follows:

	T-SHIRTS		SWEATSHIRTS
Production and sales volume	72 comma 00072,000 units		26 comma 00026,000 units
Selling price	$ 15.00$15.00		$29.00
Direct material	$ 1.50$1.50		$5.00
Direct labor	$ 4.10$4.10		$7.20
Manufacturing overhead	$ 1.90$1.90		$3.00
Gross profit	$7.50		$13.80
Selling and administrative	$ 3.70$3.70		$7.00
Operating profit	$ 3.80$3.80		$6.80

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

Activity	Activity cost	Activityminuscost driver
Supervision	$ 111 comma 600$111,600	Direct labor hours (DLH)
Inspection	$ 77 comma 350$77,350	Inspections
Activities demanded
TminusSHIRTS	SWEATSHIRTS
0.750.75 DLH/unit	1.51.5 DLH/unit
54 comma 00054,000 DLHs	39 comma 00039,000 DLHs
40 comma 00040,000 inspections	19 comma 50019,500 inspections

Using an ABC system, next year's estimates show manufacturing overhead costs will total

$ 225 comma 300$225,300

for

53 comma 00053,000

Tminusshirts.

If all other

Tminusshirt

costs and sales prices remain the same, the profitability that can be expected is ________. (Round the final answer to the nearest cent.)

A.

($ 0.69$0.69)

per

tminusshirt

B.

$ 5.70$5.70

per

tminusshirt

C.

$ 4.25$4.25

per

tminusshirt

D.

$ 1.45$1.45

per

tminusshirt