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 $237,000, 1 percent. The sales price is estimated at $69 a unit, 3 percent. The depreciation expense is $68,000 and the tax rate is 22 percent. What is the earnings before interest and taxes under the base-case scenario?

• $368,500

• $421,000

• $395,000

• $414,900

• $427,500