Adept NV Is Analyzing a Proposed Project

question 13

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 contribution margin under the expected case scenario?

• A)€2.67
• B)€3.00
• C)€7.92
• D)€8.00
• E)€8.72

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Definitions:

Burden Of Proof

To convict a defendant, the duty of the plaintiff or prosecution to establish a claim or allegation by admissible evidence and to prove to the jury or court, beyond any reasonable doubt, that the defendant committed all the essential elements of the crime.

Beyond A Reasonable Doubt

The standard of evidence required to validate a criminal conviction in most courts, denoting a high level of certainty that the accused is guilty as charged.

Oral Or Written Contract

An agreement between parties that can be either spoken or documented in writing, legally binding both parties to its terms.

Article Of The UCC

A specific section of the Uniform Commercial Code, which is a set of laws that govern commercial transactions in the United States.