Southern Goods Is Analyzing a Proposed Project Using Standard Sensitivity

Southern Goods is analyzing a proposed project using standard sensitivity analysis.The company expects to sell 4,500 units,±11 percent.The expected variable cost per unit is $13 and the expected fixed costs are $12,000.Cost estimates are considered accurate within a ± 5 percent range.The depreciation expense is $5,000.The sale price is estimated at $22 a unit,±2 percent.
What is management's best guess of the contribution margin value?

A) $2.67
B) $10.33
C) $9.00
D) $7.00
E) $8.72