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Question 34 of 40
Question 34
The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is $36,000. The fixed and 2.5 points estimates are considered accurate within a plus or minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is estimated at $14 a unit, give or take 5%. The company bases its sensitiviry analysis on the expected case scenario. What is the earnings before interest and taxes under the optimistic case scenario?
$22,694.40
$24,854.40
$37.497.60
$52,694,40
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