Question: Precise Machinery is analyzing a proposed project. The company expects to sell 2,340 units, give or take 5 percent. The expected variable cost per unit

Precise Machinery is analyzing a proposed project. The company expects to sell 2,340 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, give or take 2 percent. What is the amount of the total costs per unit under the worst case scenario?

A. $548.58

B. $551.62

C. $604.16

D. $638.23

E. $545.96

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