Question: 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
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. What is the sales revenue under the pessimistic case scenario?
$88,110.00
$73,120.00
$107,692.20
$97,020.00
$86,347.80
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