Ralph and Emma's Is Considering a Project with Total Sales

Multiple Choice

Ralph and Emma's is considering a project with total sales of $17,500,total variable costs of $9,800,total fixed costs of $3,500,and estimated production of 400 units. The depreciation expense is $2,400 a year. What is the contribution margin per unit?

A) $4.50
B) $10.50
C) $14.14
D) $19.09
E) $19.25