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Katies Office Products will be manufacturing up-scale office desks. They expect the fixed cash expenditures to be $280,000, the projected EBIT to be $200,000, and

Katies Office Products will be manufacturing up-scale office desks. They expect the fixed cash expenditures to be $280,000, the projected EBIT to be $200,000, and the accounting DOL to be 5.6. Therefore, the depreciation and amortization expense associated with this project must be:

A) 620,000

B) 640,000

C) 650,000

D) 680,000

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