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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