Amount of the fixed cost per unit under the pessimistic case

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Reference no: EM131608226

Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4,500 units, ±11 percent. The expected variable cost per unit is $13 and the expected fixed costs are $12,000. Cost estimates are considered accurate within a ± 5 percent range. The depreciation expense is $5,000. The sale price is estimated at $22 a unit, ±2 percent.

What is the amount of the fixed cost per unit under the pessimistic case scenario?

$3.00

$2.55

$4.55

$4.02

$3.15

Reference no: EM131608226

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