DK Markets expects a new project to produce sales of 9,600 units, ±8 percent. The expected variable cost per unit is $17 and the expected fixed costs are $47,000. Cost estimates are considered accurate within a range of ±3 percent. The depreciation expense is $24,600. The sale price is estimated at $39 a unit, ±2 percent. What is the sales revenue under the pessimistic case scenario?
Select one:
a. $350,000.00
b. $337,559.04
c. $344,448.00
d. $300,000.00
e. $374,400.00
DK Markets expects a new project to produce sales of 9,600 units, ±8 percent. The expected...
DK Markets expects a new project to produce sales of 9,600 units, ±8 percent. The expected variable cost per unit is $17 and the expected fixed costs are $47,000. Cost estimates are considered accurate within a range of ±3 percent. The depreciation expense is $24,600. The sale price is estimated at $39 a unit, ±2 percent. What is the amount of the fixed cost per unit under the pessimistic case scenario? Select one: a. $4.40 b. $5.16 c. $5.48 d....
Miller Mfg. is analyzing a proposed project. The company expects to sell 14,000 units, plus or minus 4 percent. The expected variable cost per unit is $14 and the expected fixed cost is $34,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $31,000. The tax rate is 34 percent. The sale price is estimated at $18 a unit, give or take 4 percent. What is the net...
Miller Mfg. is analyzing a proposed project. The company expects to sell 11,000 units, plus or minus 3 percent. The expected variable cost per unit is $8.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6 percent range. The depreciation expense is $31,000. The tax rate is 34 percent. The sale price is estimated at $13.00 a unit, give or take 5 percent. What is the net...
Russian River Co. is analyzing a new beverage line called Pliny the Infant. The company expects to sell 2863 units, give or take 10%. The expected variable cost per unit is $8.82 and the expected fixed costs are $10979. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%. The company bases its sensitivity analysis on the expected case scenario...
A business is analyzing a proposed 5-year project using standard sensitivity analysis. They expects to sell 23,000 units, ±5 percent. The expected variable cost per unit is $21.20 and the expected fixed costs are $150,000. The fixed and variable cost estimates are considered accurate within a ±5 percent range. The sales price is estimated at $35.60 a unit, ±5 percent. The project requires an initial investment of $324,000 for equipment that will be depreciated using the straight-line method to zero...
3 Floyds Brewing Co. is analyzing a new beverage line called Dusting Zombies. The company expects to sell 2,298 units, give or take 10%. The expected variable cost per unit is $7.71 and the expected fixed costs are $11,022. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%. What is the amount of the fixed cost per unit under...
Precise Machinery is analyzing a proposed project. The company expects to sell 7,500 units, ±10 percent. The expected variable cost per unit is $314 and the expected fixed costs are $647,000. Cost estimates are considered accurate within a ±4 percent range. The depreciation expense is $187,000. The sales price is estimated at $849 per unit, give or take 2 percent. The tax rate is 21 percent. The company is conducting a sensitivity analysis on the sales price using a sales...
1. Miller Mfg. is analyzing a proposed project. The company expects to sell 8.000 units, plus or minus 4 percent riable cost per unit is $11 and the ex pected fixed costs are $290,000. The fixed and variable cost estimates are considered va accurate within a plus or minus 5 percent range. The depreciation expense is $68,000,)The tax rate is 32 percent. The sales price is anit, give or take 3 percent. What is the operating cash fow under the...
1. Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 4 percent. The expected variable cost per unit is $11 and the expected fixed costs are $290,000. The fixed and variable cost estimates are c accurate within a plus or minus 5 percent range. The depreciation estimated at $64 a unit, give or take 3 percent. What is the operating cash flow under the best case scenario? expense is $68,000. The tax...
Agritech Company is analyzing a proposed 5-year project using standard sensitivity analysis. The company expects to sell 27,000 units, ±5 percent. The expected variable cost per unit is $20.80 and the expected fixed costs are $160,000. The fixed and variable cost estimates are considered accurate within a ±5 percent range. The sales price is estimated at $36.00 a unit, ±5 percent. The project requires an initial investment of $320,000 for equipment that will be depreciated using the straight-line method to...