CC's Is Analyzing a Project with Anticipated Annual Sales of 3,620

question 90

Multiple Choice

CC's is analyzing a project with anticipated annual sales of 3,620 units,± 5 percent; a sales price of $24,± 2 percent; variable costs per unit of $14.60,± 4 percent; and annual fixed costs of $12,900,± 1 percent.What will be the annual total variable costs given a sensitivity analysis using a variable cost of $16 a unit?

• A)$53,470
• B)$54,900
• C)$55,500
• D)$57,920
• E)$61,050

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Definitions:

Very Low

A descriptor indicating a significantly below-average quantity, degree, or level.

About Average

Refers to values or outcomes that fall near the middle or mean in a set of data.

Median

The middle value in a list of numbers, which separates the higher half of the data sample from the lower half.

Percentile Points

Percentile points are values that divide a set of observations into 100 equal parts, indicating the percentage of data points that fall below a certain value.