Precise Machinery Is Analyzing a Proposed Project

Multiple Choice

Precise Machinery is analyzing a proposed project. The company expects to sell 2,100 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 2 percent. What is the sales revenue under the worst case scenario?

A) $1,686,825
B) $1,496,250
C) $1,466,325
D) $1,543,500
E) $1,620,675