Precise Machinery Is Analyzing a Proposed Project That Is Expected

question 48

Multiple Choice

Precise Machinery is analyzing a proposed project that is expected to sell 1,450 units, ±3 percent. The expected variable cost per unit is $139 and the expected fixed costs are $123,000. Cost estimates are considered accurate within a ±1 percent range. The depreciation expense is $39,000. The sales price is estimated at $349 per unit, ±3 percent. What is the contribution margin per unit under the best-case scenario?

• A) $137.03
• B) $194.33
• C) $148.13
• D) $187.42
• E) $221.86

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Definitions:

Increased

Describes something that has become larger or greater in size, amount, or degree.

National Origins

Refers to the country or countries that people originate from, often considered in the context of immigration and demographic statistics.

Quota System

A policy or practice of limiting the number of people from certain groups who can do something, such as immigrate to a country, attend a school, or be employed in certain jobs.

Immigrants

Individuals who move from one country to another with the intention of settling or residing there.