The Can-Do Co

question 12

Multiple Choice

The Can-Do Co. 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

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Definitions:

Goodwill Messages

Communications intended to foster positive relations and express friendship, appreciation, or moral support.

Offer Thanks

Expressing gratitude or appreciation to someone for their help, support, or gesture, often seen in both personal and professional communication.

Goodwill Messages

Communications that express thanks, congratulations, or other positive sentiments, intended to build good relationships and positive impressions.

Five S's

Refers to five Japanese terms beginning with 'S' used to create a workplace conducive to organizational and visual harmony: Seiri (sort), Seiton (set in order), Seiso (shine), Seiketsu (standardize), and Shitsuke (sustain).