Question: Precise Machinery is analyzing a proposed project that is expected to have sales of 2,450 units, 8 percent. The expected variable cost per unit is

Precise Machinery is analyzing a proposed project that is expected to have sales of 2,450 units, 8 percent. The expected variable cost per unit is $246 and the expected fixed costs are $309,000. Cost estimates are considered accurate within a 3 percent range. The depreciation expense is $106,000. The sales price is estimated at $599 per unit, 2 percent. What is the amount of the total costs per unit under the worst-case scenario?

  • $404.16

  • $394.58

  • $338.23

  • $448.58

  • $366.67

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