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CC's is analyzing a proposed project with anticipated sales of 3,620 units, give or take 5 percent at a sales price of $24, plus or minus 2 percent.. The variable cost per unit is $14.60, plus or minus 4 percent, and the fixed costs are $12,900, plus or minus 1 percent. The depreciation expense is $8,100. If the company conducts a sensitivity analysis using a variable cost of $16, the total variable cost estimate will be:
How do you calculate the answer? Is it as easy as the $16 variable cost times the anticipated sales of 3,620 ($57,920)?
information cannot be neutral-it cannot therefore be reliable-if it is selected or presented for the purpose of
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