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ch4aika [34]
3 years ago
4

3. Sensitivity Analysis [LO1] For the company in the previous problem, suppose management is most concerned about the impact of

its price estimate on the project’s profitability. How could you address this concern? Describe how you would calculate your answer. What values would you use for the other forecast variables?
Business
1 answer:
Anit [1.1K]3 years ago
4 0

Answer and Explanation:

in order to address the concern of management for the impact of price forecast, we should perform the sensitivity analysis.

this is done by adjusting one of the variables with the best and worst while maintaining the other variables constant. the variable being adjusted for our analysis is the price estimate.

price per unit in worst-case is computed by:

price per unit in worst-case

= (price per unit in base-case)*(100% + 15%)

then:

price per unit in best-case

= (price per unit in base-case)*(100% - 15%)

below is the values for the following variables in three types of cases:

                           base case        worst case       best case

price                    $1400               $1190                $1610

units                     85000               85000             85000

variable costs      $220                   $220               $220

fixed costs           $3900000         $3900000       $3900000

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Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:
Alexxandr [17]

Answer:

1. $490,000

2. $481,000

Explanation:

1. The computation of the total amount which is included in the balance sheet is shown below:

= Accounts receivable + Accounts receivable, long term + Land + Patents

= $215,000 + $118,000 + $63,000 + $94,000

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In this the land and patents are recorded in the historical rates

2. The computation of the total amount which is included in the balance sheet is shown below:

= Accounts receivable + Accounts receivable, long term + Land + Patents

= $215,000 + $118,000 + $59,000 + $89,000

= $481,000

In this all items are recorded in the current rates

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4 years ago
Divide the following by short division:<br> 3) 186
Goryan [66]

Answer:

62

Explanation:

I first divided 3 into 180 which is 60 because 18 divided by 3 is 6 and then you add back on that 0 getting to 60.  Then for the 6, divide that by 3, which is 2 which you add to the 60 getting to 62.

I hope this helps and please don't hesitate to ask if there is anything still unclear!

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3 years ago
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Iteru [2.4K]

Answer:

The statement is: True.

Explanation:

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Answer:

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