Emerton Corporation Leases Its Corporate Headquarters Building

Multiple Choice

Emerton Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 32,000 units, the lease cost was $716,800. To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 34,400 units in a month? (Assume that this sales volume is within the relevant range.)

A) $23.20
B) $21.62
C) $20.84
D) $22.40