Axelrod Company Has Fixed Costs of $250 000

Axelrod Company has fixed costs of $250 000. Highest production volume this year was in January when there were 100 000 units produced and total costs of $550 000. How much is the variable cost per unit? (Please round all amounts to the nearest cent.)

A) $5.50
B) $3.00
C) $3.50
D) $2.50