Sales are projected at 15,500 hand sanitizer per year over the next four years. It will cost you $44,000 to install the equipment necessary to start production; youll depreciate this cost straight-line to zero over the projects life. You estimate that, in four years, this equipment can be salvaged for $32,000. Your fixed production costs will be $65,000 per year, price per unit is $7, and your variable production costs should be $1.50 per unit ($0.50 per unit in variable material costs and $1 per unit in variable labor expense). You also need an initial investment in net working capital of $90,000. You require a return of 9 percent on your investment. Ignore taxes (tax rate is 0%). You believe that estimates for units sales, unit price, unit variable costs and fixed costs are accurate only to within 15 percent.

Which of the following is true?

For the best-case scenario, fixed costs is $74,750

For the worst-case scenario, variable cost is $1.28.

For the worst-case scenario, selling price per unit is $7.

For the worst-case scenario, sales units are 13,175 hand sanitizer.

For the best case scenario, selling price per unit is $7.70