A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed and variable cost estimates are considered accurate within a range of 15 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the contribution margin for a sensitivity analysis if the fixed cost is $30,000? Multiple Choice O $13 $14 $15 $16
A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed and variable cost estimates are considered accurate within a range of 15 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the contribution margin for a sensitivity analysis if the fixed cost is $30,000? Multiple Choice O $13 $14 $15 $16
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed
and variable cost estimates are considered accurate within a range of ±5 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the
contribution margin for a sensitivity analysis if the fixed cost is $30,000?
Multiple Choice
O
$13
$14
$15
Check my work
$16
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