What will be the total annual variable costs

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Question: 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?

Reference no: EM131796967

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