Precise Machinery Is Analyzing a Proposed Project

question 67

Multiple Choice

Precise Machinery is analyzing a proposed project.The company expects to sell 2,300 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 3 percent.What is the sales revenue under the worst case scenario?

• A)$1,686,825
• B)$1,496,250
• C)$1,589,588
• D)$1,593,500
• E)$1,620,675

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Definitions:

Circulatory Fluid

The fluid that circulates in the heart and blood vessels, carrying nutrients and oxygen to cells and removing waste products; primarily blood.

Open Circulatory System

System in which hemolymph leaves vessels and seeps among tissues before returning to the heart.

Hemolymph

A fluid equivalent to blood in most invertebrates, occupying the hemocoel and involved in transporting nutrients, wastes, and hormones.

Cardiac Muscle Cells

Specialized muscle cells found in the heart that contract to pump blood throughout the body, characterized by their striated appearance and intercalated discs.