Questions
33:390:300:13 FINANCIAL MANAGEMENT Exam 2- Requires Respondus LockDown Browser
Single choice
A project has expected sales of 63,000 units, variable costs per unit of $85, fixed costs of $287,000, and a sales price per unit of $219. The depreciation expense is $53,000 and the tax rate is 23 percent. What is the contribution margin per unit?
Options
A.$134
B.$132
C.$135
D.$136
E.$133
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Step-by-Step Analysis
To begin, identify the components of contribution margin per unit: selling price per unit minus variable cost per unit.
Option analysis:
- Option "$134": This is correct because 219 (price) minus 85 (variable cost) equals 134. The depreciation and fixed co......Login to view full explanationLog in for full answers
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