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Miller Mfg. is analyzing a proposed project. The...

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Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 2 percent. The expected variable cost per unit is $11 and the expected fixed costs are $287,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $68,000. The tax rate is 32 percent. The sales price is estimated a $64 a unit, plus or minus 3 percent. What is the earnings before interest and taxes under the base case scenario? a. $46,920 b. $93,160 c. $114,920 d. $69,000 e. $58,480

 

Paper#7058 | Written in 18-Jul-2015

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