Larcker Manufacturing's cost accountant has provided you with the following information for January operations: Direct materials $ 37 per unit Fixed manufacturing overhead costs $ 220,000 Sales price $ 195 per unit Variable manufacturing overhead $ 20 per unit Direct labor $ 25 per unit Fixed marketing and administrative costs $ 200,000 Units produced and sold 6,000 Variable marketing and administrative costs $ 7 per unit Required: a. Determine the variable cost per unit.