XAE-2 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided:

Activity Usage Measures	Model MX10	Model DX20	Total
Units produced annually	15,000	40,000	55,000
Prime costs	$40,000	$100,000	$140,000
Machine hours	40,000	60,000	100,000
Production runs	14	6	20
Direct labor hours	20,000	30,000	50,000

The company primarily has three major activities as follows in the production process:

Activity	Activity Cost
Setups	$50,000
Inspections	$30,000
Power	$15,000

Calculate the unit cost of model DX 20.

a.

$4.05

b.

$3.55

c.

$3.33

d.

$2.50

e.

some other figure not listed here