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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. The company conducts a sensitivity analysis using a variable cost of 9. The total variable cost estimate will be:
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