The Adept Co

question 8

Multiple Choice

The Adept Co. 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 sales revenue under the optimistic case scenario?

• A)$40,000
• B)$43,120
• C)$44,000
• D)$44,880
• E)$48,400

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Definitions:

Occipital

Related to the occipital lobe in the brain, mainly tasked with the processing of visual information.

Temporal

Related to time, whether it involves time-based events or the chronological sequencing of events.

Receptive Field

The particular region in the field of vision that triggers a response from a neuron or a network of neurons.

Visual Cortex

The region within the occipital lobe of the brain responsible for processing information related to sight.