Fact Pattern:

A small appliance outlet is considering adding audio equipment to the sales line. Each addition to the line is to be cost$-$justified. The costs associated with one of the items under consideration, a compact disc player, are as follows:

Wholesale cost per unit

$$100$

Variable selling expenses

$20\%$ of gross sales

Variable administrative expenses

$$5$ per unit

Fixed costs $($display and repair equip.$)$

$$15,000$

Selling price

$$150$

Question

What is the contribution margin per unit for the compact disc player?

A$.$$$50$

B$.$$$45$

C$.$$$15$

D$.$$$20$