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Best-case scenario analysis

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Reference no: EM131532284

Cinram Machines has the following estimates for its new gear assembly project: price = $1,870 per unit; variable costs = $949 per unit; fixed costs = $1.4 million; quantity = 42,000 units. Suppose the company believes all of its estimates are accurate only to within ± 3 percent. What value should the company use for its total variable costs when performing its best-case scenario analysis?

A $39,822,128

B $38,578,064

C $41,802,137

D $38,216,051

E $40,864,538

Reference no: EM131532284

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