A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed and variable cost estimates are considered accurate within a range of 15 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the contribution margin for a sensitivity analysis if the fixed cost is $30,000? Multiple Choice O $13 $14 $15 $16

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 21P
icon
Related questions
Question
A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed
and variable cost estimates are considered accurate within a range of ±5 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the
contribution margin for a sensitivity analysis if the fixed cost is $30,000?
Multiple Choice
O
$13
$14
$15
Check my work
$16
Transcribed Image Text:A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed and variable cost estimates are considered accurate within a range of ±5 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the contribution margin for a sensitivity analysis if the fixed cost is $30,000? Multiple Choice O $13 $14 $15 Check my work $16
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT