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A Project Has Estimated Sales of 11,500 Units,±2 Percent

Question 45

Multiple Choice

A project has estimated sales of 11,500 units,±2 percent.The expected variable cost per unit is $13,and the expected fixed costs are $29,000.The fixed and variable cost estimates are considered accurate within a range of ±3 percent.The sales price is estimated at $29 a unit,±1 percent.What is the contribution margin for a sensitivity analysis using a fixed cost of $30,000?


A) $13
B) $14
C) $15
D) $16
E) $17

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