Question
Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4450 units, 11%. The expected variable cost per unit
Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4450 units, 11%. The expected variable cost per unit is $15 and the expected fixed costs are $15157. Cost estimates are considered accurate within a 5% range. The depreciation expense is $6611. The sale price is estimated at $24 per unit, 2%.
What is the amount of the fixed cost per unit under the pessimistic case scenario?(Round answer to 2 decimal places)
Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4194 units, 11%. The expected variable cost per unit is $14 and the expected fixed costs are $13402. Cost estimates are considered accurate within a 5% range. The depreciation expense is $6544. The sale price is estimated at $20 per unit, 2%.
If 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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