Miller Mfg. is analyzing a proposed project. The company expects to sell 12,000 units, give or take 4 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is $34,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $28,000. The tax rate is 34 percent. The sale price is estimated at $15.00 a unit, give or take 5 percent.

What is the earnings before interest and taxes under the base case scenario

$68,000

$34,000

$40,000

$52,054