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

question 31

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

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Definitions:

Homemaking

The management and maintenance of a household and its daily needs.

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage, who are closely involved in the management of the business.

Child Care

The care, supervision, and guidance of children by a person other than the child's legal guardians.

Basically Competent

Refers to a minimal level of skill or knowledge that is deemed adequate to perform a task or duty.