The Alfonso Company Is Analyzing a Project with Expected Sales

Multiple Choice

The Alfonso Company is analyzing a project with expected sales of 4,000 units, give or take 5 percent. The expected variable cost per unit is $9 and the expected total fixed costs are $17,000.
Cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation
Expense is $3,000. The sale price is estimated at $18 a unit, give or take 5 percent. Sensitivity
Analysis is based on the most likely scenario.
What is the contribution margin under the best case scenario?

A) $9.00
B) $9.18
C) $9.90
D) $10.08
E) $10.26