The Estimates for a Project Include a Sales Quantity of 22,300

question 50

Multiple Choice

The estimates for a project include a sales quantity of 22,300 units,±4 percent,variable costs per unit of $8,and fixed costs of $127,800.Cost estimates are considered accurate within a range of ±3 percent.The depreciation expense is $48,000.The sale price is estimated at $19 a unit,±6 percent.The company is conducting a sensitivity analysis on the sale price using a sale price estimate of $18.Using this value,what will be the earnings before interest and taxes?

• A)$50,500
• B)$46,000
• C)$52,500
• D)$47,200
• E)$48,500

---

Definitions:

Cost Per Click

A digital advertising model used to direct traffic to websites, where an advertiser pays a publisher (typically a website owner or a network of websites) when the ad is clicked.

Objective-and-task

A method of determining advertising budgets based on defining specific objectives and estimating the cost of tasks needed to achieve these objectives.

IMC Budget

The financial plan allocated for Integrated Marketing Communications, supporting coordination among various promotional tools and messaging efforts.

Reach and Frequency

Measures used in advertising to quantify how many people were exposed to a message (reach) and how often (frequency).