Nextel Company Showed the Following on Its Direct Materials Budget

Multiple Choice

Nextel Company showed the following on its direct materials budget for June: $\begin{array}{lr}\text { Units to be produced } & 25,000 \\\text { Total kilograms needed for production } & 10,000 \\\text { Total kilograms of materials to be purchased } & 9,000\end{array}$ The materials cost $2 per kilogram.How much is the cost of direct materials per unit?

A) $0.80
B) $0.72
C) $1.52
D) $5.00