The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%. The company bases its sensitivity analysis on the expected case scenario. The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $17. Using this value, the earnings before interest and taxes will be: A. $4,000 B. $6,000 C. $8,500 D. $10,000 E. $18,500

The company conducts a sensitivity analysis using a variable cost of $9. The total variable cost estimate will be: A. $21,375 B. $22,500 C. $23,625 D. $24,125 E. $24,750

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