Ships Ahoy Is a Small Company That Makes Model Sailboat

Multiple Choice

Ships Ahoy is a small company that makes model sailboat kits priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labour to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for the monthly salary of its owner. Ships Ahoy's unit variable cost for its kits is:

A) $50.
B) $45.
C) $170.
D) $120.