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

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