Vicade Has 1,000 Commercial Video Game Machines in Inventory Produced

Multiple Choice

Vicade has 1,000 commercial video game machines in inventory produced at a cost of $400 each (60% variable and 40% fixed) . The machines were to have been sold for $1,000 each. However, the machines currently contain a minor malfunction reducing their selling price to $150 each. The company could correct the malfunction at a variable cost of $250 each and then sell the machines for $550 each.
If the games are reworked, what will be the contribution per unit from doing so?

A) $350
B) $300
C) $150
D) $100