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Which one of the following is a correct value to use if you are conducting a best-case scenario analysis? Multiple Choice Lowest expected salvage value Highest expected need for net working capital Lowest expected level of sales quantity Lowest expected value for fixed costs Sales price that is most likely to occur

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Answer:

Lowest expected value for fixed costs

Explanation:

When you are performing different simulations and you want to analyze a best case scenario, you will use the lowest possible variable costs, the lowest possible fixed costs, the highest possible sales price and the highest possible total number of units sold. You are trying to replicate the best thing that could possibly happen to your company, so you consider the highest possible revenues and the lowest possible costs.

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