Kent CoManufactures a Product That Sells for $50

Multiple Choice

Kent Co.manufactures a product that sells for $50.00 and has variable costs of $24.00 per unit.Fixed costs are $260,000.Kent can buy a new production machine that will increase fixed costs by $11,400 per year,but will decrease variable costs by $3.50 per unit.Compute the contribution margin per unit if the machine is purchased.

A) $22.50.
B) $26.00.
C) $29.50.
D) $28.50.
E) $27.50.