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The Alfonso Company is analyzing a project with expected sales of 4,000 units, give or take 5 percent. The expected variable cost per unit is $9 and the expected total fixed costs are $17,000. Cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $3,000. The sale price is estimated at $18 a unit, give or take 5 percent. Sensitivity analysis is based on the most likely scenario.
What is the sales revenue under the worst case scenario?
Timmons Model
A framework for understanding and analyzing the dynamic process of entrepreneurship, which focuses on opportunity, team, and resources.
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An attitude or perspective that emphasizes the importance of financial outcomes in decision-making.
Operational Mind-Set
A way of thinking that focuses on the efficient execution of processes, tasks, and strategies.
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