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Cline Incorporated is expanding into the widget market. The sales price for each widget is estimated to be $ 1 4 . 0 0 ,

Cline Incorporated is expanding into the widget market. The sales price for each widget is estimated to be $14.00, give or take 5 percent. The quantity of widgets sold is expected to be 12,000, plus or minus 4 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is $36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $31,000. The tax rate is 34 percent.
What is the net income under the worst case scenario?
Multiple Choice
$600.86
$1,268.73
$1,219.94
$1,268.73
$910.40
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