DK Markets Expects a New Project to Produce Sales of 9,600

question 21

Multiple Choice

DK Markets expects a new project to produce sales of 9,600 units,±8 percent.The expected variable cost per unit is $17 and the expected fixed costs are $47,000.Cost estimates are considered accurate within a range of ±3 percent.The depreciation expense is $24,600.The sale price is estimated at $39 a unit,±2 percent.What is the amount of the fixed cost per unit under the pessimistic case scenario?

• A)$5.16
• B)$4.40
• C)$3.19
• D)$4.02
• E)$5.48