A project has expected sales of 6,000 units, a selling price of $54 a unit, variable costs equal to 62% of sales, fixed costs of $72,000, and depreciation of $13,500. Assume that total revenues and fixed costs change by 5% in a pessimistic situation. What would the pretax profits be, per year, if the pessimistic situation should occur? Show your computations.

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The Answer of A project has expected sales of 6,000 units, a selling price of $54 a unit, variable costs equal to 62% of sales, fixed costs of $72,000, and depreciation of $13,500. Assume that total revenues and fixed costs change by 5% in a pessimistic situation. What would the pretax profits be, per year, if the pessimistic situation should occur? Show your computations.

A Project Has Expected Sales of 6,000 Units, a Selling