The Franklin Co

question 123

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 amount of the fixed cost per unit under the best case scenario?

• A) $3.47
• B) $3.66
• C) $3.85
• D) $4.21
• E) $4.43

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Definitions:

Role Ambiguity

A situation where an individual lacks clear information about their job responsibilities, expectations, and the scope of their role.

Role Conflict

Occurs when there are incompatible demands placed on an individual by two or more roles they are expected to perform, leading to stress and difficulty in fulfilling duties.

Involvement

This refers to the degree of engagement and participation an individual or group has within a task, project, or decision-making process.

Decision-Making

The cognitive process of selecting a course of action from multiple alternatives.