Question: NEEDLESS INSTRUMENTS is analyzing a proposed project. The company expects to sell 2,700 units, plus or minus 4.0 percent. The sales price is estimated at

 NEEDLESS INSTRUMENTS is analyzing a proposed project. The company expects to

NEEDLESS INSTRUMENTS is analyzing a proposed project. The company expects to sell 2,700 units, plus or minus 4.0 percent. The sales price is estimated at $789 per unit, plus or minus 7 percent. The expected variable cost per unit is $270, and the expected fixed costs are $548,000. These variable and fixed cost estimates are reliable. The depreciation expense each year is $118,000. For NEEDLESS INSTRUMENTS, what is the sales revenue under the worst case scenario? A. $1,686,825.40 B. $1,901,931.84 C. $2,130,300.00 D. $2,574,055.93 OE. $1,637,017.20 Reset Selection

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!