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What will the total variable cost estimate be

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Question - Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4,500 units, ±11 percent. The expected variable cost per unit is $13 and the expected fixed costs are $12,000. Cost estimates are considered accurate within a ± 5 percent range. The depreciation expense is $5,000. The sale price is estimated at $22 a unit, ±2 percent. If the company conducts a sensitivity analysis using a variable cost of $12, what will the total variable cost estimate be?

Reference no: EM133019195

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