Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4,500 units, 11 percent. The expected variable cost per unit is $13 and the expected fixed costs are $12,000. Cost estimates are considered accurate within a 5 percent range. The depreciation expense is $5,000. The sale price is estimated at $22 a unit, 2 percent. If the company conducts a sensitivity analysis using a variable cost of $12, what will the total variable cost estimate be?

$54,000

$53,625

$59,940

$48,060

$53,500