Miller Mfg. is analyzing a proposed project. The company expects to sell 13,200

Question

Miller Mfg. is analyzing a proposed project. The company expects to sell 13,200 units, give or take 4 percent. The expected variable cost per unit is $12 and the expected fixed cost is $28,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6 percent range. The depreciation expense is $23,000. The tax rate is 34 percent. The sale price is estimated at $16 a unit, give or take 4 percent.
What is the earnings before interest and taxes under the base case scenario? $24,800 $29,800 ?$1,800 $16,368 $8,432 $24,800 $29,800 ?$1,800 $16,368 $8,432 $24,800 $29,800 ?$1,800 $16,368 $8,432

Explanation / Answer

8432

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