Please give me answer general accounting question A company is evaluating a new project with estimated sales of 3,200 units, give or take2.5 percent. The expected variable cost per unit is $8.25 and the expected fixed costs are$19,800. Cost estimates are considered accurate within a plus or minus 3.5 percent range.The depreciation expense is $3,400. The sale price is estimated at $16.75 per unit, give ortake 2 percent. The company bases its sensitivity analysis on the expected case scenario.If a sensitivity analysis is conducted using a variable cost estimate of $8.50, what will bethe total annual variable costs?a. $25,600b. $26,400c. $27,200d. $28,800

Step 1: Definition of Total Variable Costs Total variable costs are the costs that change in direct…

Answered: A company is evaluating a new project…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $12.79 and the expected fixed costs are $17,500. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, give or take 3 percent. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a variable cost estimate of $13, what will be the total annual variable costs?
A proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $12.79 and the expected fixed costs are $17,500. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, give or take 3 percent. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a variable cost estimate of $13, what will be the total annual variable costs? Show me answer
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. If the company conducts a sensitivity analysis using a variable cost of $12, what will the total variable cost estimate be? $53,625 $53,500 $54,000 $48,060 $59,940
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What will be the total annual variable costs ?
A company is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 15,000 units, \pm 5 percent. The expected variable cost per unit is $8 and the expected fixed costs are $ 40,000. The fixed and variable cost estimates are considered accurate within a \pm 7 percent range. The sales price is estimated at $15 a unit, \pm 6 percent. The project requires an initial investment of $120,000 for equipment that will be depreciated using the straight-line method to zero over the project's life. The equipment can be sold for $30,000 at the end of the project. The project requires $12,000 in net working capital for the three years but will be fully recovered when the project closes. The discount rate is 12.8 percent and tax rate is 20 percent. What is the net present value for the optimistic scenario? $92,058.28 $94, 075.71 $ 96,093.14 $98,110.57 $100, 128.00
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Total annual variable costs?
Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,080 per unit; variable cost = $300 per unit; fixed costs = $4.81 million; quantity = 71,000 units. Suppose the company believes all of its estimates are accurate only to within ±16 percent. What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations and enter your answers in dollars, not million, rounded to the nearest whole number, e.g., 1,234,567.)
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