If the company conducts a sensitivity analysis using a


New Foods is analyzing a proposed project with expected sales of 8,700 units, ±4 percent. The expected variable cost per unit is $26 and the expected fixed costs are $49,000. Cost estimates are considered accurate within a range of ±1 percent. The depreciation expense is $18,300. The sale price is estimated at $52 a unit, ±3 percent. If the company conducts a sensitivity analysis using a variable cost of $28, what will be the total variable cost estimate?

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Finance Basics: If the company conducts a sensitivity analysis using a
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