A proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $6.79 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 $7, what will be the total annual variable costs? a. $20,750 b. $16,625 c. $17,500 d. $17,850 e. $18,125 Marsich Company has the following information for September: Sales Variable cost of goods sold Fixed manufacturing costs $500,000 $235,000 $80,000 Variable selling and administrative expenses $45,000 Fixed selling and administrative expenses $30,000 Determine the following for Marsich Company for the month of September. 1. Manufacturing margin 2. Contribution margin 3. Income from operations
A proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $6.79 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 $7, what will be the total annual variable costs? a. $20,750 b. $16,625 c. $17,500 d. $17,850 e. $18,125 Marsich Company has the following information for September: Sales Variable cost of goods sold Fixed manufacturing costs $500,000 $235,000 $80,000 Variable selling and administrative expenses $45,000 Fixed selling and administrative expenses $30,000 Determine the following for Marsich Company for the month of September. 1. Manufacturing margin 2. Contribution margin 3. Income from operations
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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provide both answer without fail
Transcribed Image Text:A proposed project has estimated sale units of 2,500, give
or take 2 percent. The expected variable cost per unit is
$6.79 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 $7, what will be the total annual
variable costs?
a. $20,750
b. $16,625
c. $17,500
d. $17,850
e. $18,125
Marsich Company has the following information for
September:
Sales
Variable cost of goods sold
Fixed manufacturing costs
$500,000
$235,000
$80,000
Variable selling and administrative expenses $45,000
Fixed selling and administrative expenses $30,000
Determine the following for Marsich Company for the month
of September.
1. Manufacturing margin
2. Contribution margin
3. Income from operations
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