A firm is reviewing a project with a labor cost of $18.90 per unit, raw materials cost of $21.63 a unit, and fixed costs of $8,000 a month. Sales are projected at 7,200 units total for the 3-year life of the project. What are the total variable costs per year?
A) $106,300
B) $99,300
C) $97,272
D) $103,300
E) $109,300
C) $97,272
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