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
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