Cinram Machines Has the Following Estimates for Its New Gear

question 35

Multiple Choice

Cinram Machines has the following estimates for its new gear assembly project: price = $1,870 per unit; variable costs = $949 per unit; fixed costs = $1.4 million; quantity = 42,000 units.Suppose the company believes all of its estimates are accurate only to within ± 3 percent.What value should the company use for its total variable costs when performing its best-case scenario analysis?

• A)$38,578,064
• B)$39,822,128
• C)$38,216,051
• D)$41,802,137
• E)$40,864,538

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Definitions:

Team

A group of individuals working together towards a common goal, often characterized by collaboration, communication, and collective effort.

Exaggerated Hockey Stick

A term used to describe a revenue growth projection for a business that unrealistically shows a sharp increase in revenue after a certain point, resembling a hockey stick.

Slip-On Shoe

A type of shoe that does not require lacing or fastening, designed to be easily slipped on and off the foot.

Market

The arena in which commercial dealings are conducted, often referring to the supply and demand for goods and services.