You manufacture face masks. Sales are projected at 15,500 face masks per year over the next four years. It will cost you $44,000 to install the equipment necessary to start production; youll depreciate this cost straight-line to zero over the projects life. You estimate that, in four years, this equipment can be salvaged for $32,000. Your fixed production costs will be $65,000 per year, price per unit is $7, and your variable production costs should be $1.50 per unit ($0.50 per unit in variable material costs and $1 per unit in variable labor expense). You also need an initial investment in net working capital of $90,000. You require a return of 9 percent on your investment. Ignore taxes (tax rate is 0%).

You believe that estimates for units sales, unit price, unit variable costs and fixed costs are accurate only to within -/+15 percent.

Which of the following is true?

1. For the worst-case scenario, sales units are 13,175 face masks.

2. For the best case scenario, selling price per unit is $7.70

3. For the best-case scenario, fixed costs is $74,750

4. For the worst-case scenario, selling price per unit is $7.

5. For the worst-case scenario, variable cost is $1.28.