The Adept Co

question 12

Multiple Choice

The Adept Co. 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 (including depreciation) . 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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Definitions:

Stimuli

External factors or changes in the environment that affect sensory organs and can provoke physical or behavioral responses.

Self-efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Reciprocal Determinism

A concept in psychology proposed by Albert Bandura that suggests individual behavior, environment, and cognition all interact and influence each other.

Ideal Self

represents an individual's conception of how they would like to be, often serving as a standard for self-evaluation.