A Proposed Project Has Fixed Costs of $39,480, Depreciation Expense

question 37

Multiple Choice

A proposed project has fixed costs of $39,480, depreciation expense of $8,724, and a sales quantity of 1,330 units. The total variable costs are $5,607. What is the contribution margin per unit if the projected level of sales is the accounting break-even point?

• A) $37.81
• B) $34.63
• C) $36.24
• D) $35.16
• E) $38.13

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Definitions:

Management By Objectives

A management strategy in which employees and managers establish clear, specific objectives that are used to measure and guide performance and achievements.

Objective Attainment

The process of setting, pursuing, and achieving goals, which are often quantifiable and specific, within an organization or personal setting.

Performance Monitoring

The systematic process of tracking, analyzing, and improving an individual's or organization's performance over time.

Management By Objectives

A performance management approach where managers and employees work together to set, record, and monitor goals for a specific period, aiming at achieving organizational objectives.