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As a financial manager who is responsible to evaluate the feasibility of business projects, you perform a few relevant analyses that are Sensitivity, Scenario and
As a financial manager who is responsible to evaluate the feasibility of business projects, you perform a few relevant analyses that are Sensitivity, Scenario and Breakeven analyses. Your company expects to sell 12,000 units, give or take 4%. The expected variable cost per unit is RM7 and the expected fixed cost is RM36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6% range. The depreciation expense is RM60,000. The tax rate is 34%. The sale price is estimated at RM14 a unit, give or take 5%. The company bases its sensitivity analysis on the expected case scenario. Compute Earnings before interest and taxes (EBIT) under three economic scenarios that are Pessimistic, Expected and Optimistic. Construct relevant table and show your working
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