Southern Goods is analyzing a proposed project using standard sensitivity analysis. The company expects to sell 4,500 un

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Southern Goods is analyzing a proposed project using standardsensitivity analysis. The company expects to sell 4,500 units, ±11percent. The expected variable cost per unit is $13 and theexpected fixed costs are $12,000. Cost estimates are consideredaccurate within a ± 5 percent range. The depreciation expense is$5,000. The sale price is estimated at $22 a unit, ±2percent.If the company conducts a sensitivity analysis using a variablecost of $12, what will the total variable cost estimate be?
$54,000
$53,625
$59,940
$48,060
$53,500