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Maslowich
2 years ago
14

If a firm's variable cost per unit estimate used in its base-case analysis is $50 per unit and they anticipate the upper and low

er bounds to be ± 10 percent, what is the "worst case" for variable cost per unit?
Business
1 answer:
vlada-n [284]2 years ago
8 0

Based on the base-case analysis of the firm's variable cost and the upper bounds anticipated, the worst case for variable cost per unit is $52.50.

<h3>What is the worst case for variable costs?</h3>

The worst case scenario for expenses would be a situation where they are higher instead of lower.

This means that the upper bound of the variable cost will be applied to find the worst case scenario:

= Base case analysis amount x (1 + upper bound)

= 50 x (1 + 5%)

= $52.50.

Find out more on variable costs at brainly.com/question/5965421.

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3 years ago
How to become a firefighter. I want to become one.
ladessa [460]

Answer:

-valid driver's license

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(may be differnt depending on your state, country, etc)

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5 0
3 years ago
Tara is responsible for the strategic planning retail planning process in her organization. She has identified the strategic opp
Stells [14]

Answer:

A. Evaluate strategic opportunities.

Explanation:

In strategic retail planning the steps begin with definition of business mission, conduct situation analysis, identify strategic opportunities, and the next stage is to evaluate the strategic opportunities.

In the evaluation stage we look at how feasible a strategic opportunity is. A choice is made between different alternatives to come up with the best choice for the business.

6 0
2 years ago
Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk. The savings on these bu
Luden [163]

Answer:

E.cooperative

Explanation:

Based on the information provided within the question it seems that Stephanie Johns is most likely shopping in a cooperative store. This is a type of store that is owned and managed by the customers themselves, using their own capital for the business and at the same time share in the dividends provided. Which in this case are savings from lower food prices.

8 0
2 years ago
Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk
Eduardwww [97]

Answer:

A. $840,000

B. Discount

C. Annual interest expense on these bonds will be more than  the amount of interest paid each year.

Explanation:

Data

Bonds issued = $21,000,000

Coupin rate = 4.0%

Market Interest rate = 4.46%

Requirement A: Annual interest amount

Interest amount = Bonds issued x coupon rate

Interest amount = $21,000,000 x 4.0%

Interest amount = $840,000

Requirement B: Whether it is Premium or Discount?

Bonds that Atom Endeavour Co. issued are discount as you can clearly see in the data that the market rate is higher than the coupon rate. Investors who will buy these bonds surely expect a capital gain.

Requirement C:

The discount on the issue of bonds is amortized to interest expense over the life of the bond, therefore the interest expense on these bonds will be more than the amount of interest paid each year,

3 0
3 years ago
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