Precise Machinery Is Analyzing a Proposed Project

question 51

Multiple Choice

Precise Machinery is analyzing a proposed project.The company expects to sell 2,250 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 3 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 amount of the total costs per unit under the worst case scenario?

• A)$548.58
• B)$551.62
• C)$604.16
• D)$638.23
• E)$640.25

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Definitions:

Erectile Tissue

Specialized tissue capable of becoming erect when filled with blood, found in parts of the body such as the penis and clitoris.

Erect

A description of something being in a rigid, upright position, or specifically referring to the condition of an organ filled with blood and stiffened, often used in sexual context.

Blood

A vital liquid flowing in the bodies of many types of animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Prepuce

The fold of skin that covers the head of the penis in uncircumcised males and the clitoral hood in females; also known as foreskin in males.