The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are $12,500 (including depreciation) . Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%. The company bases its sensitivity analysis on the expected case scenario What is the amount of the fixed cost per unit under the pessimistic case scenario?
A) $4.55
B) $5.00
C) $5.83
D) $6.02
E) $6.55
Correct Answer:
Verified
Q3: An investigation of the degree to which
Q4: Fixed production costs are:
A) directly related to
Q6: Sensitivity analysis helps you determine the:
A) range
Q8: The Mini-Max Company has the following cost
Q9: Scenario analysis is different than sensitivity analysis
Q10: Sensitivity analysis is conducted by:
A) holding all
Q11: In order to make a decision with
Q15: The sales level that results in a
Q55: The Adept Co. is analyzing a proposed
Q58: The Adept Co. is analyzing a proposed
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