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A Project Has a Projected Sales Price of $99 a Unit,variable

Question 63

Multiple Choice

A project has a projected sales price of $99 a unit,variable costs per unit of $58,annual fixed costs of $238,000,and annual depreciation of $139,000.The tax rate is 22 percent.What is the contribution margin for an analysis using sales units of 12,800?


A) $27.06
B) $38.97
C) $22.41
D) $41.00
E) $42.64

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