Trevor's Machines, Inc. (TMI) produced the following traditional income statement for the current year:
Units Produced and Sold:
40,000
Total
Per Unit
Sales Revenue
$3,120,000
$78
Cost of Goods Sold
2,160,000
54
Gross Profit
960,000
24
Selling and Administrative Expenses
573,000
Operating Income
$387,000
Additionally, TMI had total fixed manufacturing overhead costs of $560,000.
What it TMI's unit product cost for the current year under variable costing?
A. $14 per unit
B. $30 per unit
C. $54 per unit
D.$40 per unit