The Meldrum Co

question 55

Multiple Choice

The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units,give or take 15%. The expected variable cost per unit is $8 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $18 a unit,give or take 2%. The company bases its sensitivity analysis on the expected case scenario. What is the sales revenue under the optimistic case scenario?

• A) $54,400
• B) $55,080
• C) $62,100
• D) $63,342
• E) $65,030

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Definitions:

Social Status

The position or rank of a person or group within the societal hierarchy, influenced by factors such as wealth, occupation, education, and ancestry.

Preference

Describes an individual's selection or tendency towards a choice or option among various alternatives based on personal taste or value.

Sons

Male offspring in relation to their parents.

Self-Silencing

The act of suppressing one's thoughts, feelings, or needs to maintain relationships or avoid conflict.