Ships Ahoy Is a Small Company That Makes Model Sailboat

Ships Ahoy is a small company that makes model sailboat kits priced at $120.The costs of the materials that go into each kit are $45.It costs $5 in labour to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising,and $3,500 for the monthly salary of its owner.Ships Ahoy's unit variable cost for its kits is:

A) $45.
B) $50.
C) $120.
D) $170.

Correct Answer:

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