Question: 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

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 financial 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?

Multiple Choice

$81,110
$76,192
$84,207
$72,549
$76,667

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