Ralph and Emma's Is Considering a Project with Total Sales

question 302

Multiple Choice

Ralph and Emma's is considering a project with total sales of $17,500, total variable costs of $9,800, total fixed costs of $3,500, and estimated production of 400 units. The depreciation expense is
$2,400 a year. What is the contribution margin per unit?

• A) $4.50
• B) $10.50
• C) $14.14
• D) $19.09
• E) $19.25

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