Ask Question
BusinessBusiness
20 April, 07:50

ABC Co. expects to sell 2,200 units, give or take 10 percent. The expected variable cost per unit is $8.43 and the expected fixed costs are $9,500. 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 its sensitivity analysis on the expected case scenario. If the company conducts a sensitivity analysis on the sales price using a price estimate of $16.25, what will be the earnings before interest and taxes

+3
Answers (1)
  1. 20 April, 09:58
    0
    Earning Before Interest and Taxes $3,704

    Explanation:

    Sales (2,200 * 16.25) 35,750

    Less: Variable Costs (2,200 * 8.43) (18,546)

    Contribution Margin 17,204

    Less: Fixed Cost (9,500)

    Depreciation Expense (4,000)

    Earning Before Interest and Taxes $3,704
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “ABC Co. expects to sell 2,200 units, give or take 10 percent. The expected variable cost per unit is $8.43 and the expected fixed costs are ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100.
Answers (1)
Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge.
Answers (1)
Which of the following statements is correct? a. A company must apply the same cost flow assumption to all its inventory. b. A company must apply one cost flow assumption to at least 80% of the inventory. c.
Answers (1)
Krasel Corporation exchanges old equipment for new equipment. The original cost of the old equipment was $90,000, and its accumulated depreciation at the date of exchange was $70,000.
Answers (2)
Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations.
Answers (1)
New Questions in Business
Who is responsible for first mass producing cars on the assembly line in world war 1?
Answers (1)
What would you call a object that makes people shut up
Answers (1)
How do you present your educational qualifications in a resume?
Answers (1)
Most contracts are discharged by fulfilling conditions precedent
Answers (1)
River Falls Manufacturing uses a normal cost system and had the following data available for 2018: Direct materials purchased on account $148,000 Direct materials requisitioned 88,000 Direct labor cost incurred 127,000 Factory overhead incurred
Answers (1)
Home » Business » ABC Co. expects to sell 2,200 units, give or take 10 percent. The expected variable cost per unit is $8.43 and the expected fixed costs are $9,500. Cost estimates are considered accurate within a plus or minus 5 percent range.
Sign Up Forgot Password?