A Proposed Project Has Fixed Costs of $39,480, Depreciation Expense

Multiple Choice

A proposed project has fixed costs of $39,480, depreciation expense of $8,724, and a sales quantity of 1,330 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) $37.81
B) $34.63
C) $36.24
D) $35.16
E) $38.13