Cinram Machines Has the Following Estimates for Its New Gear

question 24

Multiple Choice

Cinram Machines has the following estimates for its new gear assembly project: price = $1,870 per unit; variable costs = $949 per unit; fixed costs = $1.4 million; quantity = 42,000 units.Suppose the company believes all of its estimates are accurate only to within ± 3 percent.What value should the company use for its total variable costs when performing its best-case scenario analysis?

• A)$38,578,064
• B)$39,822,128
• C)$38,216,051
• D)$41,802,137
• E)$40,864,538

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