Adept NV 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.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 sales revenue under the optimistic case scenario?

Question

Quizplus · Accepted Answer

To calculate the sales revenue under the optimistic scenario, we need to consider the upper limit of sales volume and sales price.

Upper limit of Sales Volume = 2,500 + 10% of 2,500 = 2,750

Upper limit of Sales Price = €16 + 2% of €16 = €16.32

Total Sales Revenue under the optimistic scenario = 2,750 units x €16.32 per unit = €44,880

Therefore, the answer is D) €44,880.

Adept NV Is Analyzing a Proposed Project