Question
Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4200 units, 11%. The expected variable cost per unit
Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4200 units, 11%. The expected variable cost per unit is $13 and the expected fixed costs are $16000. Cost estimates are considered accurate within a 5% range. The depreciation expense is $8000. The sale price is estimated at $22 per unit, 2%.
What is the amount of the fixed cost per unit under the pessimistic case scenario?(Round answer to 2 decimal places)
If, instead, the company conducts a sensitivity analysis using a variable cost of $12, what will the total variable cost estimate be?(Round answer to 2 decimal places)
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