Accounting work

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3. A company is producing a product and faces three different types of costs. First, the company has fixed monthly overhead of $80,000. Second, the firm has stepwise costs associated with production equipment. Each machine the company uses can process 12,000 units of volume per month and costs $3,000. Finally, the firm has standard linear variable costs that increase directly with volume. Each unit produced by the company requires $0.75 of direct labor and raw materials. What is the cost per unit under the traditional volume-based approach if the firm produces 120,000 units this month?

A. $1.00

B.$1.44

C.$1.67

D.$2.50

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