Question: Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4500 units 11 percent. The expected variable cost per

Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4500 units 11 percent. The expected variable cost per unit is $13 and the expected fixed costs are $12000. Cost estimates are considered accurate within a 5 percent range. The depreciation expense is $5000. The sale price is estimated at $22 a unit 2 percent. What is management's best guess of the contribution margin value?

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