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:

Social Influence

The effect that the words, actions, or mere presence of other people have on an individual's attitudes, beliefs, or behavior.

Perceptions

The way individuals interpret and understand their sensory information from the world around them.

Group Dynamics

The study of the behavior, interactions, and psychological processes that occur within a social group.

Risky Shift

The phenomenon where groups tend to make riskier decisions together than individuals would make on their own.