The accounting break-even production quantity for a project is 5,425 units. The fixed costs are $31,600 and the contribution margin is $6. What is the projected depreciation expense?

A) $700
B) $950
C) $1,025
D) $1,053
E) $1,100

Accounting Break-Even

The point where total sales equal total expenses, and the company makes no profit but also incurs no loss.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up over a period.

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of the business activity level.