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A company is analyzing a proposed project. The company expects to sell 14,600 units, plus or minus 2 percent. The expected variable cost per unit
A company is analyzing a proposed project. The company expects to sell 14,600 units, plus or minus 2 percent. The expected variable cost per unit is $16 and the expected fixed cost is $36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $33,000. The tax rate is 34 percent. The sale price is estimated at $30 a unit, give or take 2 percent.
What is the incremental net income generated by the project under the best-case scenario?
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