Precise Machinery Is Analyzing a Proposed Project

question 65

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.The tax rate is 35 percent.The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $755.What is the operating cash flow based on this analysis?

• A)$337,975
• B)$293,089
• C)$86,675
• D)$354,874
• E)$368,015

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Definitions:

Quasi-experimental Design

A research strategy that attempts to establish cause-effect relationships among the variables involved but does not fully meet the criteria for controlled experiments, often lacking random assignment.

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A chronic brain disorder that affects a person's thinking, feeling, and behavior, leading to delusional thoughts, hallucinations, and impaired functioning.

Parental Training

A therapeutic program aimed at teaching parents strategies and skills to manage and improve their children's behavior problems.

Analogue Experiment

A research method in which the experimenter produces abnormal-like behavior in laboratory participants and then conducts experiments on the participants.