What will be the total annual variable costs

Assignment Help Financial Management

Reference no: EM131462559

A proposed project has estimated sale units of 2,500, give or take 2 percent.. The expected variable cost per unit is $6.79 and the expected fixed costs are $17,500. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, give or take 3 percent. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a variable cost estimate of $7, what will be the total annual variable costs?

$20,750

$17,500

$16,625

$18,125

$17,850

Reference no: EM131462559

Questions Cloud

Describe the conceptual framework or theory : Summarize the five articles you selected as indicated in Part III: Analysis of Literature. Describe the conceptual framework/theory

Determine the demographics of one of the company markets : Market segmentation is the process of breaking down a larger target market into smaller segments. One common base of market segmentation is demographics.

Review the hydroboration-oxidation reaction : Review the hydroboration-oxidation reaction from your Organic I experience. Draw tripropylborane and 1-propanol, and show partial charges to illustrate umpolung

Draft a letter to a specific legislator : Draft a letter to a specific legislator and offer support or constructive argument against pending policy or legislation.

What will be the total annual variable costs : A proposed project has estimated sale units of 2,500, give or take 2 percent. what will be the total annual variable costs?

How is international test commission statement on test user : Reflect on your learning experience. How is the International Test Commission statement on test user competency similar to or different from your state law?

Calculate the temperature of an argon sample : Calculate the temperature of an argon sample at 55.4 kPa and 18.6L if it occupies 25.8 L at 75.0 degrees C and 41.1 kPa.

The first kings of israel were : The authoritative list of the twenty-seven books that make up the New Testament (Christian Scriptures) is known as.

What is the standard deviation of these returns : A stock had returns of 8 percent, -4 percent, 4 percent, and 18 percent over the past four years. What is the standard deviation of these returns?

User Account

All Pages