Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure: Variable costs per unit: Production$8Selling and administrative$5Fixed costs per year: Production$82,500Selling and administrative$60,000 There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold. Under absorption costing, the unit product cost would be:
A. $8.00 per unit
B. $10.75 per unit
C. $17.75 per unit
D. $13.00 per unit
Answer: B
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