Description of this paper

Precise Machinery is analyzing a proposed project....

Description

Solution


Question

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?

 

Paper#7059 | Written in 18-Jul-2015

Price : $25
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