The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or
Question:
The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%. The company bases its sensitivity analysis on the expected case scenario. What is the sales revenue under the optimistic case scenario?
A. $40,000
B. $43,120
C. $44,000
D. $44,880
E. $48,400
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D 44880 Adept Company Best Case Base Case Worse Case Unit Sales 2750 2500 2250 ...View the full answer
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Related Book For 
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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