HiLo Mfg. is analyzing a project with anticipated sales of 12,500 units, 2 percent. The variable cost per unit is $13, 2 percent, and the expected fixed costs are $227,000, 1 percent. The sales price is estimated at $70 a unit, 3 percent. The depreciation expense is $25,300 and the tax rate is 21 percent. What is the earnings before interest and taxes under the base-case scenario?

Multiple Choice

• $382,500

• $393,500

• $413,500

• $460,200

• $389,500