Solve the below problem:
Q: Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:
Expected Activity
Activity Cost Pool Estimated Costs Product A Product B Total
Activity 1 $18,000 700 300 1,000Activity 2$24,000500 100 600Activity 3 $60,0008004001,200
The cost per unit of Product A under activty-based costing is closest to