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Suppose you are given the following information. What would be the assumptions for the worst case scenario? Unit Sales: 18,000; Price per Unit $40; Variable
Suppose you are given the following information. What would be the assumptions for the worst case scenario? Unit Sales: 18,000; Price per Unit \$40; Variable costs per unit: \$35; Fixed Costs $150,000 Unit Sales: 22,000; Price per Unit \$60; Variable costs per unit: \$35; Fixed Costs $150,000 Unit Sales: 18,000; Price per Unit \$40; Variable costs per unit: $25; Fixed Costs $100,000 Unit Sales: 22,000; Price per Unit \$25; Variable costs per unit: \$60; Fixed Costs $150,000 In Question #3, assuming that these are accurate projections for lower and upper bound values, is the company exposed to more risk due to changes in fixed costs or variable costs? It is impossible to tell. Fixed costs Neither Variable costs
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