A Firm Is Reviewing a Project with a Labor Cost

Multiple Choice

A firm is reviewing a project with a labor cost of $18.90 per unit,raw materials cost of $21.63 a unit,and fixed costs of $8,000 a month.Sales are projected at 7,200 units total for the 3-year life of the project.What are the total variable costs per year?

A) $106,300
B) $99,300
C) $97,272
D) $103,300
E) $109,300