Final answer:
The contribution per unit for the appliance sold at $299 via traditional retail stores is negative, indicating a loss rather than a contribution.
Step-by-step explanation:
To calculate the contribution per unit for the appliance, we need to subtract the variable cost per unit from the selling price per unit. We can use the information provided:
Fixed costs of production = $250
Marginal cost of producing the first unit = $700
Selling price at traditional retail stores = $299
Thus, the contribution per unit = Selling price per unit - Marginal cost per unit = $299 - $700 = $-401
Since the result is negative, it means that selling the appliance at $299 via traditional retail stores would result in a loss rather than a contribution. Therefore, none of the options provided (A, B, C, or D) are correct.