The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10 percent. 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 percent range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2 percent. The company bases their sensitivity analysis on the expected case scenario.

26. 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

27. 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

28. What is the amount of the fixed cost per unit under the pessimistic case scenario? 

A. $4.55   B. $5.00   C. $5.83   D. $6.02   E. $6.55

29. The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $17. Using this value, the earnings before interest and taxes will be: 

A. $4,000   B. $6,000   C. $8,500   D. $10,000   E. $18,500

30. The company conducts a sensitivity analysis using a variable cost of $9. The total variable cost estimate will be: 

A. $21,375   B. $22,500   C. $23,625   D. $24,125   E. $24,750

31. A firm is reviewing a project with labor cost of $8.90 per unit, raw materials cost of $21.63 a unit, and fixed costs of $8,000 a month. Sales are projected at 10,000 units over the three-month life of the project. What are the total variable costs of the project? 

A. $216,300   B. $297,300   C. $305,300   D. $313,300   E. $329,300

32. A project has earnings before interest and taxes of $5,750, fixed costs of $50,000, a selling price of $13 a unit, and a sales quantity of 11,500 units. Depreciation is $7,500. What is the variable cost per unit? 

A. $6.75   B. $7.00   C. $7.25   D. $7.50   E. $7.75