Question $2.$ The following is your best guess with respect to Project XX

Marketable units to be produced:

Expected Price per unit:

$10,000$

Expected Variable cost per unit:

GHS $25$

Expected Fixed cost:

GHS $10$

GHS $100,000$

a$)$ What is your estimate of the net profit that is expected from this project next

year? You are in the $25\%$ tax bracket. $[3$ marks$]$

b$)$ Ignoring all other costs, conduct scenario analysis on your base estimate of the

net profit of this project assuming that your best guess of three variables $($except

fixed cost$)$ given above may be off the base estimates by no more than $10\%.$

What insight do you gain from the scenario analysis you just conducted?$[12$

marks$]$

c$)$ Conduct sensitivity analysis on expected variable cost using the $10\%$ above. $[4$

marks$]$

d$)$ Below what unit price will the project become unprofitable? $[6$ marks$]$