Question
A project has earnings before interest and taxes of $14,600, fixed costs of $52,000, a selling price of $30 a unit, and a sales quantity
A project has earnings before interest and taxes of $14,600, fixed costs of $52,000, a selling price of $30 a unit, and a sales quantity of 16,000 units. All estimates are accurate within a plus/minus range of 3 percent. Depreciation is $12,000. What is the worst case variable cost per unit?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
