Cline Incorporated is expanding into the widget market. The sales price for each widget is estimated to be $13.00, give or take 4 percent. The quantity of widgets sold is expected to be 13,000, plus or minus 4 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 5 percent range. The depreciation expense is $30,000. The tax rate is 34 percent. What is the net income under the worst case scenario?

• $-21,214.34

• $-15,831.60

• $-22,275.06

• $-22,062.92

• $-10,448.86