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Southern Goods Is Analyzing a Proposed Project Using Standard Sensitivity

question 34

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Southern Goods is analyzing a proposed project using standard sensitivity analysis.The company expects to sell 4,500 units,±11 percent.The expected variable cost per unit is $13 and the expected fixed costs are $12,000.Cost estimates are considered accurate within a ± 5 percent range.The depreciation expense is $5,000.The sale price is estimated at $22 a unit,±2 percent.
What is the sales revenue under the pessimistic case scenario?

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Globalization

The process by which, as a result of international communication, transportation, and trade, countries around the world influence one another’s lifestyle, economics, and culture, so that similarities among nations increase along with interaction.

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The extent to which an individual's career path is steady and secure over time, often influenced by the job market and personal choices.

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The state of having control over one's own financial decisions and resources.

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