A Proposed Project Has Estimated Sales of 3,300 Units Per

Multiple Choice

A proposed project has estimated sales of 3,300 units per year,± 4 percent; a sales price of $23 a unit,± 1 percent; variable costs per unit of $12.60,± 2 percent; annual fixed costs of $16,200; and annual depreciation of $3,100.What is the contribution margin under the expected scenario?

A) $5.49
B) $4.55
C) $18.09
D) $10.40
E) $9.46