34. Scenario analysis is different than sensitivity analysis: A. because no economic forecasts are changed.B.because several variables are changed together.C. because scenario analysis deals with actual data versus sensitivity analysis which deals with a forecast.D. because it is short and simple.E. because it is a "by the seat of the pants" technique.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.35. What is the sales revenue under the optimistic case scenario? Sales revenue for the best case = 2,500 ×1.1 ×$16 ×1.02 = $44,88036. What is the contribution margin under the expected case scenario? Contribution margin for the base case = $16 - $8 = $811

37. What is the amount of the fixed cost per unit under the pessimistic case scenario? Fixed cost per unit for the worst case = ($12,500 ×1.05) ÷(2,500 ×.9) = $5.8338. 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: A. $4,000B.$6,000C. $8,500D. $10,000E. $18,500EBIT = [($17 - $8) ×2,500] - $12,500 - $4,000 = $6,00039. The company conducts a sensitivity analysis using a variable cost of $9. The total variable cost estimate will be: Total variable cost = $9 ×2,500 = $22,50040. Wilson's Meats has computed its fixed costs to be $.60 for every pound of meat it sells given an average daily sales level of 500 pounds. It charges $3.89 per pound of top-grade ground beef. The variable cost per pound is $2.99. What is the contribution margin per pound of ground beef sold? Contribution margin = $3.89 - $2.99 = $.9012

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