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Appalachian Crafts Is Analyzing a Project with Expected Sales of 18,900

Question 41

Multiple Choice

Appalachian Crafts is analyzing a project with expected sales of 18,900 units,±2 percent.The expected variable cost per unit is $23 and the expected fixed costs are $52,000.Cost estimates are considered accurate within a range of ±1 percent.The depreciation expense is $18,400.The sale price is estimated at $54 a unit,±2 percent.What is the total dollar difference between the revenue using the optimistic sale price versus the expected sale price?


A) $24,600
B) $16,800
C) $20,412
D) $17,894
E) $22,200

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