A Project Has a Contribution Margin of $15,projected Fixed Costs

Multiple Choice

A project has a contribution margin of $15,projected fixed costs of $120,000,variable costs per unit of $12,annual depreciation of $61,000,and a projected present value break-even point of 13,601.20 units.The tax rate is 21 percent,the discount rate is 12 percent,and the project life is 3 years.What is the equivalent annual cost?

A) $81,110
B) $76,192
C) $84,207
D) $72,549
E) $76,667