A proposed project has fixed costs of $9,800, depreciation expense of $2,700, and a sales quantity of 2,100 units. The total variable costs are $5,607. What is the contribution margin per unit if the projected level of sales is the accounting break-even point?
A)$3.28
B)$4.07
C)$5.95
D)$6.16
E)$7.11

Question

Quizplus · Accepted Answer

Contribution margin = ($9,800 + $2,700)/2,100 = $5.95

A Proposed Project Has Fixed Costs of $9,800, Depreciation Expense