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

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the sales price per unit minus the variable cost per unit: $99 - $58 = $41.00.

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