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Cinram machines has the following estimates for its new gear assembly project: price = $1,340 per unit; variable costs = $348 per unit; fixed costs = $5.1 million; quantity = 82,000 units. suppose the company believes all of its estimates are accurate only to within ± 5 percent. what value should the company use for its total variable costs when performing its best-case scenario analysis

Answer :

taskmasters taskmasters

Today at 2:53 AM

Given:
Price per unit : 1,340
variable cost per unit: 348
fixed cost: 5.1 million
quantity produced: 82,000 units
estimate: + 5 percent

Total variable cost: (82,000)(1.05)(348)(0.95) = 28,464,660

Considering the accuracy of the estimate, the total variable cost is $28,464,660.00

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