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DK Markets expects a new project to produce sales of 9,600 units, 8 percent. The expected variable cost per unit is $17 and the expected

DK Markets expects a new project to produce sales of 9,600 units, 8 percent. The expected variable cost per unit is $17 and the expected fixed costs are $47,000. Cost estimates are considered accurate within a range of 3 percent. The depreciation expense is $24,600. The sale price is estimated at $39 a unit, 2 percent. What is the amount of the fixed cost per unit under the pessimistic case scenario?

Select one:

a. $4.40

b. $5.16

c. $5.48

d. $3.19

e. $4.02

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