Adept NV Is Analyzing a Proposed Project

question 74

Multiple Choice

Adept NV is analyzing a proposed project.The company expects to sell 2,500 units,give or take 10%.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 €16 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)€40,000
• B)€43,120
• C)€44,000
• D)€44,880
• E)€48,400

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Definitions:

Henry Mintzberg

A renowned management theorist best known for his work on business strategy and organizational structures.

Interpersonal

Relates to interactions and relationships between people, often focusing on communication and emotional exchange.

Informational

Pertaining to the dissemination, processing, or provision of data or facts.

Decisional

Relating to the process of making choices or decisions, often in a business or organizational context.