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Question: ABC Co. expects to sell 2,200 units, give or take 10 percent. The expected variable cost per unit is $8.43 and the expected fixed costs are $9,500. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2 percent. The company bases its sensitivity analysis on the expected case scenario. If the company conducts a sensitivity analysis on the sales price using a price estimate of $16.25, what will be the earnings before interest and taxes?

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