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DK Markets expects a new project to produce sales of 9,600 units, 8 percent. The expected variable cost per unit is $17 and the expected
DK Markets expects a new project to produce sales of 9,600 units, 8 percent. The expected variable cost per unit is $17 and the expected fixed costs are $47,000. Cost estimates are considered accurate within a range of 3 percent. The depreciation expense is $24,600. The sale price is estimated at $39 a unit, 2 percent. What is the amount of the fixed cost per unit under the pessimistic case scenario?
Select one:
a. $4.40
b. $5.16
c. $5.48
d. $3.19
e. $4.02
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