New Foods Is Analyzing a Proposed Project with Expected Sales

Multiple Choice

New Foods is analyzing a proposed project with expected sales of 8,700 units,±4 percent.The expected variable cost per unit is $26 and the expected fixed costs are $49,000.Cost estimates are considered accurate within a range of ±1 percent.The depreciation expense is $18,300.The sale price is estimated at $52 a unit,±3 percent.If the company conducts a sensitivity analysis using a variable cost of $28,what will be the total variable cost estimate?

A) $233,856
B) $253,344
C) $253,625
D) $243,600
E) $248,060