Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
-35
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost per
Unit
$5.35
$5.70
$1.40
$8.00
$3.95
$1.80
$0.60
$0.55
If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:
Multiple Choice
$13.40