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Contribution margin in the expected case

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The company is analyzing a project proposal. The company expects to sell 2500 units, plus or minus 10%. The expected variable cost per unit is € 8 and the expected fixed costs are € 12 500.

Cost estimates are considered reliable within a range of plus or minus 5%. The depreciation fee is € 4000. The selling price is estimated at € 16 per unit, plus or minus 2%. The company bases its sensitivity analysis on the expected case. What is the amount of the fixed cost per unit in the pessimistic scenario and What is the contribution margin in the expected case scenario?

Reference no: EM132613916

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