Precise Machinery Is Analyzing a Proposed Project

Multiple Choice

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?

A) $1,686,825
B) $1,496,250
C) $1,589,588
D) $1,593,500
E) $1,620,675