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Miller Mfg. is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 3 percent. The expected variable cost per unit is $8.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $32,000. The tax rate is 34 percent. The sale price is estimated at $13.00 a unit, give or take 4 percent. What is the net income under the worst case scenario?

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Financial Management, Finance

Category:- Financial Management
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