Precise Machinery Is Analyzing a Proposed Project

question 68

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 $775 per unit,give or take 2 percent.The tax rate is 34 percent.The company is conducting a sensitivity analysis with fixed costs of $590,000.What is the OCF given this analysis?

• A)$337,975
• B)$285,350
• C)$368,250
• D)$374,874
• E)$414,350

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Definitions:

Postoperative

Pertaining to the period following a surgical procedure, focusing on recovery and monitoring for any potential complications.

Systolic Reading

The top number in a blood pressure measurement, indicating the pressure in the arteries when the heart beats.

Gluten-Free

A diet that excludes gluten, a protein found in wheat, barley, and rye, often adopted by those with celiac disease or gluten sensitivity.

Low Sodium

A dietary condition or recommendation involving reduced intake of sodium to help manage or prevent high blood pressure and other cardiovascular diseases.