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A project has a projected sales quantity of 810 units, a sales price of $56 a unit, a variable cost per unit of $38, and
A project has a projected sales quantity of 810 units, a sales price of $56 a unit, a variable cost per unit of $38, and fixed costs of $5,200. All estimates are within a plus or minus range of 3 percent. You would like to test the sensitivity of the projects NPV to the sales quantity. Which one of the following sales prices should you use in your analysis?
| A. | $56.00 |
| B. | $57.68 |
| C. | $54.32 |
| D. | $60.00 |
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
