The Franklin Co

question 17

Multiple Choice

The Franklin Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 15 percent. The expected variable cost per unit is $6 and the expected fixed costs are
$15,500. Cost estimates are considered accurate within a plus or minus 5 percent range. The
Depreciation expense is $6,000. The sales price is estimated at $21 a unit, give or take 3 percent.
The company bases their sensitivity analysis on the base case scenario
What is the sales revenue under the worst case scenario?

• A) $60,600.75
• B) $62,474.00
• C) $73,500.00
• D) $84,525.00
• E) $87,060.75

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Definitions:

Family and Friends

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The complex set of life-sustaining chemical reactions in the body's cells that process nutrients and convert them into energy.

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A medical condition characterized by an excessive accumulation and storage of fat in the body, leading to health problems.

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The concentration of estrogen hormones in the body, which are crucial for the development and regulation of the female reproductive system and secondary sexual characteristics.