Question: 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

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. $187.42

B. $137.03

C.$221.86

D.$194.33

E.$148.13

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!