What is the sales revenue under the worst case scenario

Assignment Help Finance Basics
Reference no: EM13288445

Lester Machinery is analyzing a proposed project. The company expects to sell 2,100 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, plus or minus 2 percent. What is the sales revenue under the worst case scenario?

Answer

$1,686,825

$1,496,250

$1,466,325

$1,543,500

$1,620,675

 

Reference no: EM13288445

Questions Cloud

Capital structure management is more an art than a science : Discuss why capital structure management is more an art than a science
What percentage of radiated energy will be detected : aircraft has cross section of 710 m^2, what percentage of radiated energy will be detected
Should the project be accepted : The firm requires a 15.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted? Why or why not? Please Show work!
How many cups of coffee must it sell to break-even : The sales price is $1.49 per cup while the variable cost per cup is $0.63. How many cups of coffee must it sell to break-even on a cash basis?
What is the sales revenue under the worst case scenario : The sales price is estimated at $750 per unit, plus or minus 2 percent. What is the sales revenue under the worst case scenario?
What will be most important to investigate : In evaluating the department in terms of its increases in sales and expenses, what will be most important to investigate?
What is the level of sales required to achieve : What is the level of sales (in units) required to achieve a net income of 15 percent of sales?
Determine the speed the car when it passes the truck : At the instant a traffic light turns green a car that has been waiting at the intersection starts ahead with a constant acceleration of 2.00 m/s2. Determine the speed the car when it passes the truck
How much maintenance cost should be allocated to department : How much maintenance cost should be allocated to department B for March?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd