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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:
Average cost per unit
Direct Materials $4.60
Direct Labor $4.20
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $8.00
Fixed selling expense $3.20
Fixed administrative expense $1.70
Sales commissions $0.70
Variable administrative expense $0.65
If the selling price is $23.00 per unit, the contribution margin per unit sold is closest to:
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