Your Company Is Reviewing a Project with Estimated Labor Costs

question 44

Multiple Choice

Your company is reviewing a project with estimated labor costs of $21.20 per unit,estimated raw material costs of $37.18 a unit,and estimated fixed costs of $20,000 a month.Sales are projected at 42,000 units over the one-year life of the project.All estimates are accurate within a range of plus or minus 4 percent.What are the total variable costs for the worst-case scenario?

• A)$890,400
• B)$1,561,560
• C)$2,448,037
• D)$2,451,960
• E)$2,691,960

---

Definitions:

Blockbuster Franchise

A series of movies that are commercially very successful, often featuring extensive merchandising and multiple sequels.

Postproduction House

A Postproduction House is a specialized studio or company that performs the final editing, sound, visual effects, and color correction in film, television, or other video productions.

Cutting-Edge

Describes technology, ideas, or methods that are the most advanced or innovative at the current time.

George Lucas

An influential filmmaker and creator of the "Star Wars" and "Indiana Jones" franchises, known for pushing the boundaries of technology in film.