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Adept NV Is Analyzing a Proposed Project

question 41

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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.The company conducts a sensitivity analysis using a variable cost of €9.The total variable cost estimate will be:

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Definitions:

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish, align day-to-day work with strategy, and measure and monitor progress toward strategic targets.

Research And Development

Activities undertaken by a company to innovate and introduce new products or improve existing products or processes.

Performance Perspectives

Different angles from which to evaluate and assess the performance of a company or organization, often used in strategic management and balanced scorecards.

Internal Processes

The procedures and activities carried out within an organization to achieve its business objectives.

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