Precise Machinery Is Analyzing a Proposed Project That Is Expected

Multiple Choice

Precise Machinery is analyzing a proposed project that is expected to sell 1,450 units, ±3 percent. The expected variable cost per unit is $139 and the expected fixed costs are $123,000. Cost estimates are considered accurate within a ±1 percent range. The depreciation expense is $39,000. The sales price is estimated at $349 per unit, ±3 percent. What is the contribution margin per unit under the best-case scenario?

A) $137.03
B) $194.33
C) $148.13
D) $187.42
E) $221.86