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Adept NV is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is
Adept NV 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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