The Adept Co

question 68

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 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:

Allometric Growth Patterns

Growth rates that are not proportional among an organism's body parts as the organism grows, often resulting in different shapes and sizes of body parts in adulthood compared to those in juvenility.

Body Parts

Various physical components of organisms, including limbs, organs, and other structures, contributing to overall function and form.

Growth Rates

The rate at which a given variable, such as population, size, or economic value, increases over a certain period of time.

Paedomorphosis

A developmental phenomenon where adults of a species retain juvenile characteristics.