1. Victor has been making basic mouse traps since 1898. This year, Victor expects a total contribution (TC) of $324,003.48 on sales of 217,452 units. Wholesalers distribute the mouse traps through independent hardware stores and home centers. The wholesalers use a selling price basis of 20%, earning them a CPU of $0.62 per mouse trap. Consumers buy the mouse traps for $4.99.

   (e) If Victor decides to increase its selling price by 4.4% to offset increased manufacturing costs but the wholesaler does not feel it can pass along the increased cost and continues to sell at its same selling price, what is its new CPU?

   		$0.51
   		$0.50
   		$0.53
   		$0.54