Use This Information for Swan Company to Answer the Questions

Multiple Choice

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the activity rate for production setup?

A) $2,500 per setup
B) $833 per setup
C) $625 per setup
D) $400 per setup