Precise Machinery Is Analyzing a Proposed Project

question 38

Multiple Choice

Precise Machinery is analyzing a proposed project. The company expects to sell 2,100 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, plus or minus 2 percent. What is the sales revenue under the worst case scenario?

• A)$1,686,825
• B)$1,496,250
• C)$1,466,325
• D)$1,543,500
• E)$1,620,675

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Definitions:

Input-Output Control

A production management technique that monitors the input of materials and output of products to ensure efficient operation of the manufacturing process.

Finite Capacity Scheduling

A method for planning and scheduling resource allocations and processes, considering the limited availability of these resources.

Time Buckets

A term used in planning and scheduling to represent specific periods of time, such as days, weeks, or months, for organizing activities or data.

MRP

Material Requirements Planning, a system for calculating materials and components needed to manufacture a product.