Assume a project has these estimated values Sales quantity of 4600 units plus

# Assume a project has these estimated values sales

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57.Assume a project has these estimated values: Sales quantity of 4,600 units, plus or minus 2 percent; variable cost per unit of \$17, plus or minus 3 percent; fixed costs of \$46,900, plus or minus 1 percent; depreciation of \$17,300; and a sales price of \$39 a unit, plus or minus 10 percent. The tax rate is 34 percent. The company bases its sensitivity analysis on the expected case scenario. What will be the operating cash flow for a sensitivity analysis based on a sales price of \$35 a unit? 58.CC’s is analyzing a proposed project with anticipated sales of 3,620 units, give or take 5 percent at a sales price of \$24, plus or minus 2 percent.. The variable cost per unit is \$14.60, plus or minus 4 percent, and the fixed costs are \$12,900, plus or minus 1 percent. The depreciation expense is \$8,100. If the company conducts a sensitivity analysis using a variable cost of \$16, the total variable cost estimate will be: A. \$27,319B. \$32,400C. \$29,576D. \$26,700E. \$23,508A. \$53,470B. \$54,900C. \$55,500D. \$57,920E. \$61,050 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Intermediate Ross - Chapter 07 #57 Section: 7.1 Topic: Sensitivity analysis AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Basic Ross - Chapter 07 #58 Section: 7.1 Topic: Sensitivity analysis 59.A firm is reviewing a project with a labor cost of \$18.90 per unit, raw materials cost of \$21.63 a unit, and fixed costs of \$8,000 a month. Sales are projected at 7,200 units total for the 3-year life of the project. What are the total variable costs per year? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Basic Ross - Chapter 07 #59 Section: 7.1 Topic: Break-even analysis 60.A project has earnings before interest and taxes of \$5,750, fixed costs of \$50,000, a selling price of \$13 a unit, and a sales quantity of 11,500 units. Depreciation is \$7,500. What is the variable cost per unit? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Intermediate Ross - Chapter 07 #60 Section: 7.1 Topic: Break-even analysis 61.At a production level of 5,600 units, a project has total costs of \$89,000. The variable cost per unit is \$11.20. What is the amount of the total fixed costs? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Basic Ross - Chapter 07 #61 Section: 7.1 62.A project has a contribution margin of \$2.16 per unit. If the sales price per unit is \$11 and the fixed costs are \$24,700, what is the amount of total costs at a production level of 6,000 units? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Intermediate Ross - Chapter 07 #62 Section: 7.1 Topic: Break-even analysis  • • • 