New Town Instruments Is Analyzing a Proposed Project

question 92

Multiple Choice

New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?

• A) $1,086,825
• B) $896,201
• C) $984,061
• D) $1,014,496
• E) $932,017

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Definitions:

Perception Of Sound

The process by which sounds are interpreted and understood by the brain, involving the conversion of sound waves into neural signals.

Hz

The unit of frequency in the International System of Units (SI), representing one cycle per second.

Neanderthals

An extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago.