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problem: The Can-Do 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 dollar & the expected fixed costs are 12,500 dollar. Cost estimates are considered accurate within a plus or minus 5% 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. Determine the sales revenue under the optimistic case scenario?

[A] $44,000

[B] $44,880

[C] $48,400

[D] $40,000

Basic Finance, Finance

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