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Q 9 : The Franklin Co . is analyzing a proposed project. The company expects to sell 3 , 5 0 0 units, give or

Q9: The Franklin Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 15 percent. The expected variable cost per unit is $6 and the expected fixed costs are $15,500. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $6,000. The sales price is estimated at $21 a unit, give or take 3 percent. The company bases their sensitivity analysis on the base case scenario
What is the contribution margin under the base case scenario?
Multiple Choice
$14.82
$15.63
$14.55
$15.00
$15.45

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