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In the upcoming year ABC Ltd. is forecasted to sell 30,000 units of its product at a price per unit of $26.00. Variable costs per
In the upcoming year ABC Ltd. is forecasted to sell 30,000 units of its product at a price per unit of $26.00. Variable costs per unit are $16.00 and the annual fixed costs are $32,600. Each of these four variables could be 9% higher or lower than forecasted. ABC also has annual depreciation expenses of $36,100 and a 42% tax rate. What is ABC's net income (after-tax) under the worst-case scenario?
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