Roger Excavating Company Experienced the Following Costs in 2014 During 2014, the Company Manufactured 100,000 Units and Sold 80,000

Multiple Choice

Roger Excavating Company experienced the following costs in 2014: $\begin{array}{lr}\text { Direct materials } & \$ 1.75 \text { per unit } \\\text { Direct labor } & \$ 2.00 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 2.50 \text { per unit } \\\text { Variable selling } & \$ 0.75 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 50,000 \\\text { Fixed selling } & \$ 15,000 \\\text { Fixed administrative } & \$ 5,000\end{array}$ During 2014, the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65, what is the amount of the company's contribution margin per unit?

A) $16.40
B) $15.65
C) $18.90
D) $13.65