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