A firm is examing a nine year project in whivh a fixed asset is purchased for $540 and is depreciated straight line to zero over nine years. The firm knows the following with certainty: price per unit =$12 variable cost per unit =$5 and fixed cost =$35. The firm estimate the quantity will be 20 units but the actual quantity could be 15% higher or lower. the tax rate is 20% find net income in the best case scenario.

A fimis examing a nine-year project in which a fixed asset is purchased for $540 and is depreciated straight line to zero over nine years. The firm knows the following with certainty price per unit = $12, variable cast per unit = 55, and fixed cost = 535. The firm estimates that quantity will be 20 units, but the actual quantity could be 15% higher or lower. The tax rate is 20% Find net income in the best-case scenario, $19 541 353 567 582 $36