What will the total variable cost estimate be

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Reference no: EM132014481

Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4194 units, ±11%. The expected variable cost per unit is $14 and the expected fixed costs are $13402. Cost estimates are considered accurate within a ± 5% range. The depreciation expense is $6544. The sale price is estimated at $20 per unit, ±2%.

If the company conducts a sensitivity analysis using a variable cost of $12, what will the total variable cost estimate be? (Round answer to 2 decimal places)

Reference no: EM132014481

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