Bryon Catering Produces Box Lunches,which It Sells for $20 Each

Multiple Choice

Bryon Catering produces box lunches,which it sells for $20 each.During the current month,Seattle produced 2,800 meals,but only sold 2,700 meals.The variable cost per meal was $12 and the sales commissions per meal were $1.Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200.What is the product cost per meal under absorption costing?

A) $14.00
B) $12.50
C) $20.50
D) $12.00