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Happy Joes Engineering company 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 6 percent range. The depreciation expense is $31,000. The tax rate is 34 percent. The sale price is estimated at $15.00 a unit, give or take 4 percent.

What is the net income under the worst case scenario?

$533.81

$1,116.31

$808.80

$1,148.82

$1,083.79

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940305

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