Sunset United is analyzing a proposed project. The company expects to sell 15,000 units, plus or...
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Sunset United is analyzing a proposed project. The company expects to sell 15,000 units, plus or minus 4%. The expected variable cost per unit is $120 and the expected fixed costs are $311,000. The fixed and variable cost estimates are considered accurate within a plus or minus 3% range. The depreciation expense is $ 74,000. The tax rate is 35%. The sales price is estimated at $170 a unit, plus or minus 2%. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $ 125? Sunset United is analyzing a proposed project. The company expects to sell 15,000 units, plus or minus 4%. The expected variable cost per unit is $120 and the expected fixed costs are $311,000. The fixed and variable cost estimates are considered accurate within a plus or minus 3% range. The depreciation expense is $ 74,000. The tax rate is 35%. The sales price is estimated at $170 a unit, plus or minus 2%. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $ 125?
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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