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A Proposed Project Has fiXed Costs of $3,700, Depreciation Expense

Question 339

Multiple Choice

A proposed project has fixed costs of $3,700, depreciation expense of $1,400, and a sales quantity of 1,500 units. What is the contribution margin if the projected level of sales is the accounting break-
Even point?


A) $2.47
B) $2.64
C) $3.10
D) $3.40
E) $3.71

Correct Answer:

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