CanDo SA Is Analyzing a Proposed Project

question 64

Multiple Choice

CanDo SA is analyzing a proposed project.The company expects to sell 12,000 units,give or take 4%.The expected variable cost per unit is €7 and the expected fixed cost is €36,000.The fixed and variable cost estimates are considered accurate within a plus or minus 6% range.The depreciation expense is €30,000.The tax rate is 34%.The sale price is estimated at €14 a unit,give or take 5%.The company bases its sensitivity analysis on the expected case scenario.What is the contribution margin for a sensitivity analysis using a variable cost per unit of €8?

• A)€3
• B)€4
• C)€5
• D)€6
• E)€7

---

Definitions:

Kohlberg's Postconventional

The third level in Kohlberg's theory of moral development, where individuals make ethical decisions based on universal principles of justice and rights.

Retirement

The period in life where an individual stops working full-time, often due to age, allowing for more personal time and less income.

Family and Friends

Social support networks consisting of relatives and acquaintances, often providing emotional and material support.

Metabolism

The complex set of life-sustaining chemical reactions in the body's cells that process nutrients and convert them into energy.