Cinram Machines Has the Following Estimates for Its New Gear

question 87

Multiple Choice

Cinram Machines has the following estimates for its new gear assembly project: price = $1,340 per unit; variable costs = $348 per unit; fixed costs = $5.1 million; quantity = 82,000 units.Suppose the company believes all of its estimates are accurate only to within ± 5 percent.What value should the company use for its total variable costs when performing its best-case scenario analysis?

• A)$26,578,064
• B)$28,464,660
• C)$28,536,000
• D)$28,802,130
• E)$30,864,538

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