Southern Goods is analyzing a proposed project using standard sensitivity analysis.The company expects to sell 4,500 units,±11 percent.The expected variable cost per unit is $13 and the expected fixed costs are $12,000.Cost estimates are considered accurate within a ± 5 percent range.The depreciation expense is $5,000.The sale price is estimated at $22 a unit,±2 percent.
What is the sales revenue under the pessimistic case scenario?
A) $97,020.00
B) $73,120.00
C) $86,347.80
D) $88,110.00
E) $107,692.20
Correct Answer:
Verified
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