Purchase Solution

Total costs per unit under the worst case scenario

Not what you're looking for?

Ask Custom Question

Able Machinery is analyzing a proposed project. The company expects to sell 2,100 units give or take 5%. The expected variable cost per unit is $260. and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 % range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit. give or take 2 per cent. What is the amount of the total costs per unit under the worst case scenario?

a. $548.58
b. $577.45
c. $604.16
d. $638.23
e $640.25

Purchase this Solution
Solution Summary

The solution explains how to calculate the total costs per unit under the worst case scenario.

Solution Preview

In the worst case scenario for costs we would consider the highest costs and ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Motivation

This tests some key elements of major motivation theories.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

View More Free Quizzes
Related BrainMass Solutions

  • The Best-Case Scenario

    551379 The Best-Case Scenario Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $3,000 per unit; variable costs = $600 per unit; fixed costs = $1.8 million; quantity = 90,000 units.

  • Financial Management: Depreciation, Variable Pricing

    ., 32.16)) Scenario Unit Sales Variable Cost Fixed Costs NPV Base $ $ $ Best Worst b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs.

  • Capital Budgeting and Scenario Manager in Excel

    Using scenario manager find best case, worst case, and base case of NPV based on sales in pounds, price per pound, and variable cost percent. Solution is attached. Glad to help.

  • Calculating OCF/NPV of Projects

    Your worst-case NPV for this project is $______ and your best-case NPV is $______.

  • Accounting: Capital budgeting and Decision Making

    per year= 55% probability b) Worst case scenario= 18,750 units sold per year- 25% probability c) Best Case scenario= 31,250 units sold per year- 20% probability Base Case Scenario Net present value (NPV) ($442,945.70) IRR -1.93% Profitability

  • Accounting Investment Projections

    What values should the co. use for the 4 variables given here when it performs its best case scenario analysis? What about the worst case scenario? 8.

  • BestServers.com Case Study: PV, IRR, MIRR, sensitivity analysis

    The servers would sell for $24,000 per unit, and BestServers believes that variable costs would amount to $17,500 per unit. The company's fixed costs would also rise by $1 million per year.

  • Friendly Co-op Target Profit Breakeven Variable Cost Ratio CMR

    Calculate Friendly's annual fixed costs and break even sales for the third store under the best and the worst case scenarios. (Best case considers the low end of cost estimates.)

  • Operating cash flow and npv

    Your worst-case NPV for this project is $____& your best-case NPV is $____.Please see the attached file. This discusses the computation of Operating cash flow and npv

View More Related Solutions