A Proposed Project Has Fixed Costs of $9,800, Depreciation Expense

Multiple Choice

A proposed project has fixed costs of $9,800, depreciation expense of $2,700, and a sales quantity of 2,100 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) $3.28
B) $4.07
C) $5.95
D) $6.16
E) $7.11