You are the marketing manager for Clean Cut, a manufacturer of shaving products. Your company produces several lines of safety razors for men and women. The company markets several lines of razors across a limited number of independent (third party) retail stores. It is currently deciding whether or not to sell its higher end model (the Clozer) via a website based sales strategy of direct internet sales. In evaluating this idea, you are to consider the following set of information:

Clozer factory labor = $.20/unit

Clozer raw materials = $.50/unit

Clozer administrative overhead = $50,000

Clozer advertising = $50,000

Packaging = $.15/unit

Retailer's margin = 20%

Sales Force commissions = 10% of the retail selling price (this applies when company salespeople make sales to independent retailers).

E-commerce website (for internet sales only) = $25,000

Vehicle leases (for direct Sales Force only) = $60,000

Given this information, which number below is the Clozer's per unit contribution when sold via retail channels at a price of $5.00?

A . $4.15
B		$2.65
C		$3.65
D		$3.50