Precise Machinery Is Analyzing a Proposed Project

question 100

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,give or take 2 percent.What is the contribution margin per unit under the best case scenario?

• A)$209.52
• B)$494.60
• C)$469.52
• D)$490.00
• E)$515.40

---

Definitions:

Incongruity

The state of being out of place, lacking harmony or consistency with surround elements or expectations.

Theory of Humor

A set of ideas intended to explain what humor is and what social functions it serves, including why we find certain things funny.

Defense Mechanisms

are psychological strategies used unconsciously to protect oneself from anxiety and unacceptable thoughts and feelings.

Projective Tests

Tests designed to assess unconscious material by asking test takers to respond to ambiguous stimuli.