Mattress Company Sells One of Its Products for $35 Each

Multiple Choice

Mattress Company sells one of its products for $35 each. Sales volume averages 2,400 units per year. Recently, its main competitor reduced the price of its product to $30. Mattress Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 2,400) is as follows: The non-value-added cost per unit is

A) $4.525.
B) $4.190.
C) $4.875.
D) $3.475.