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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