CanDo SA Is Analyzing a Proposed Project

question 73

Multiple Choice

CanDo SA is analyzing a proposed project.The company expects to sell 12,000 units, give or take 4%.The expected variable cost per unit is €7 and the expected fixed cost is €36,000.The fixed and
Variable cost estimates are considered accurate within a plus or minus 6% range.The depreciation
Expense is €30,000.The tax rate is 34%.The sale price is estimated at €14 a unit, give or take 5%.
The company bases its sensitivity analysis on the expected case scenario.What is the earnings
Before interest and taxes under the pessimistic case scenario?

• A)-€566.02
• B)-€422.40
• C)-€278.78
• D)€3,554.50
• E)€5,385.60

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Definitions:

Anxiety Disorders

A category of mental health diagnoses that lead to excessive nervousness, fear, apprehension, and worry.

Antipsychotic Drugs

Medications used to treat psychotic symptoms, such as delusions and hallucinations, common in mental health disorders like schizophrenia.

Psychotic Symptoms

Manifestations of severe mental disorders that involve a loss of contact with reality, such as hallucinations or delusions.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.