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 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
- E. $1,637,017.20
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