Birmingham Corporation Manufactures Batons

Birmingham Corporation manufactures batons.Birmingham can manufacture 300,000 batons a year at a variable cost of $750,000 and a fixed cost of $450,000.Based on Birmingham's predictions,240,000 batons will be sold at the regular price of $5.00 each.In addition,a special order was placed for 60,000 batons to be sold at a 40 percent discount off the regular price.The unit relevant cost per unit for Birmingham's decision is

A) $1.50.
B) $2.50.
C) $3.00.
D) $4.00.

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