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4 March, 23:47

The Adept Co. is analyzing a proposed project. The company expects to sell 3,100 units, give or take 5 percent. The expected variable cost per unit is $9 and the expected fixed costs are $10,500. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 3 percent. What is the sales revenue under the optimistic case scenario?

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  1. 5 March, 00:01
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    sales revenue under optimistic condition will be of 60,347.7 dollars.

    Explanation:

    the optimistic case scenario will be if the company sales and price are higher than planned.

    In this case:

    units sold are 5% higher and; sales price is 3% higher:

    Sales revenue: unit sold x unit price

    unit sold: 3,100 x 1.05 = 3,255

    unit price: 18 x 1.03 = $ 18.54

    Sales revenue = 3,255 units x $ 18.54 = $ 60,347.7
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