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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Definitions:

Extensor Pollicis Brevis

A muscle in the forearm that extends the thumb.

Thumb

The first digit of the hand, providing a wide range of motion and enabling precise grip and manipulation of objects.

Retinaculum

Dense regular connective tissue sheath holding down the tendons at the wrist, ankle, or other sites.

Dorsal Interossei

Muscles located between the bones of the hand that act to abduct (spread apart) the fingers.