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Homework answers / question archive / The following information should be used for problems (1)-(5): The Adept Co

The following information should be used for problems (1)-(5): The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are $12,500. 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. (1). What is the sales revenue under the optimistic case scenario? (2). What is the contribution margin under the expected case scenario? (3). What is the amount of the fixed cost per unit under the pessimistic case scenario? (4). The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $17. Using this value, the earnings before interest and taxes will be: (5). The company conducts a sensitivity analysis using a variable cost of $9. The total variable cost estimate will be: