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1. A company is analyzing a proposed project. The company expects to sell 3,299 units plus or minus 4.00%. The expected VC per unit is

1. A company is analyzing a proposed project. The company expects to sell 3,299 units plus or minus 4.00%. The expected VC per unit is $11 and the expected FC are $12,500. Cost estimates are considered accurate within plus or minus 2%. The depreciation expense is $2,000. The sale price is estimated at $19 a unit plus or minus. What is the contribution margin under the expected case scenario?

2. A proposed project has estimated sale units of 2,499 plus or minus 2%. The expected variable cost per unit is $6.79 and the expected FC are $17,500. Cost estimates are considered accurate within (+/-)3%. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, (+/-)3%. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a VC estimate of $7, what will be the total annual VCs?

3. A project has earnings before interest and taxes of $5,750, fixed costs of $50,000, a selling price of $13 a unit, and a sales quantity of 11,500 units. Depreciation is $7,500. What is the variable cost per unit?

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