PNY Currently Sells Its Primary Product for $85 Per Unit

Multiple Choice

PNY currently sells its primary product for $85 per unit, with a profit margin of 30%. Cost of goods sold totals 40% of the product's total cost. PNY's managers are considering implementing a kaizen costing system. PNY's current product cost (direct costs and manufacturing overhead) per unit is:

A) $59.50
B) $23.80
C) $25.50
D) $15.30