Adept NV Is Analyzing a Proposed Project

question 15

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.The company conducts a sensitivity analysis using a
Variable cost of €9.The total variable cost estimate will be:

• A)€21,375
• B)€22,500
• C)€23,625
• D)€24,125
• E)€24,750

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Definitions:

External Attributions

The process of assigning the cause of behavior to situational factors outside the individual, rather than to internal characteristics.

Self-serving Bias

A cognitive bias where individuals attribute positive outcomes to their own actions and negative outcomes to external factors.

Task Difficulty

The level of challenge associated with completing a particular task, which can vary based on skills, resources, and other factors.

Causal Explanations

The reasons given or inferred for the occurrence of certain events, focusing on cause-and-effect relationships.