Adept NV Is Analyzing a Proposed Project

question 1

Multiple Choice

Adept NV 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.What is the amount of the fixed cost per unit under the
Pessimistic case scenario?

• A)€4.55
• B)€5.00
• C)€5.83
• D)€6.02
• E)€6.55

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Definitions:

Certain Stimuli

Specific environmental or internal triggers that evoke a physiological or psychological response.

Interplay

The way in which two or more things have an effect on each other.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Environment

The surrounding physical, social, and cultural conditions in which an organism or community lives and interacts.