Sensitive, Inc. is currently manufacturing and selling 2,400 bottles of hand lotion per month. Manufacturing a bottle of lotion incurs $7.50 in variable costs that includes $2.50 in selling expenses. The company has $3,000 per month in fixed manufacturing overhead and $2,000 in fixed selling and administrative costs. What is the cost of goods manufactured per unit using absorption costing?

Box 1: Select the best answer