contestada

Which one of the following will be used in the computation of the best-case analysis of a project?
a. the highest level of fixed costs that is actually anticipated
b. minimal number of units that are expected to be produced and sold
c. the lowest expected salvage value that can be obtained for a project's fixed assets
d. the most expected sales price per unit
e. the lowest variable cost per unit that can reasonably be expected

Respuesta :

Answer: e. the lowest variable cost per unit that can reasonably be expected.

Explanation:

The lowest variable cost per unit that can reasonably be expected will be used in the computation of the best-case analysis of a project.

It should be noted that the lower variable costs will tend to increase the profit of a company under the best case analysis and therefore when it's being compared with other options, it's the correct option.

Therefore, the correct option is E.