Appalachian Crafts Is Analyzing a Project with Expected Sales of 18,900

question 53

Multiple Choice

Appalachian Crafts is analyzing a project with expected sales of 18,900 units,±2 percent.The expected variable cost per unit is $23 and the expected fixed costs are $52,000.Cost estimates are considered accurate within a range of ±1 percent.The depreciation expense is $18,400.The sale price is estimated at $54 a unit,±2 percent.What is the total dollar difference between the revenue using the optimistic sale price versus the expected sale price?

• A)$24,600
• B)$16,800
• C)$20,412
• D)$17,894
• E)$22,200

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Definitions:

Competitors

Entities that are in the same industry or market and compete against each other for customers, market share, or resources.

Full-Scale Production

The manufacturing of products at the maximum capacity or volume that a facility can sustain, typically after successful pilot production and testing stages.

Product Mix

The total range of products that a company produces or sells, encompassing variety, features, and quality.

Product Lines

Groups of related products marketed by a company, which possess similar features, functions, or are targeted at similar markets.