Fixed cost per unit under the worst-case scenario

Reference no: EM131538481

The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units give or take 15 percent. 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 percent range. The depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 2 percent. What is the amount of the fixed cost per unit under the worst-case scenario?

Reference no: EM131538481

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