A Project Has Expected Sales of 54,000 Units, ±5 Percent

question 25

Multiple Choice

A project has expected sales of 54,000 units, ±5 percent, variable cost per unit of $87, ±2 percent, fixed costs of $287,000, ±1 percent, and a sales price per unit of $219, ±2 percent. The depreciation expense is $47,000 and the tax rate is 23 percent. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $85?

• A) $132
• B) $134
• C) $135
• D) $136
• E) $133

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Definitions:

P-value

A statistical measure that helps to determine the significance of results obtained in hypothesis testing, indicating the probability of observing results at least as extreme as those observed, under the assumption that the null hypothesis is true.

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A classification of individuals based on their usage of tobacco products, typically categorized into current smoker, former smoker, and never smoked.

P-value

A statistical measure that indicates the probability of the observed data under the assumption that the null hypothesis is true.

Sick Leave Rate

The ratio or percentage of employees taking absence from work due to illness within a specified time period.