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Miller Mfg. is analyzing a proposed project. The company expects to sell 11,000 units, plus or minus 4 percent. The expected variable cost per unit
Miller Mfg. is analyzing a proposed project. The company expects to sell 11,000 units, plus or minus 4 percent. The expected variable cost per unit is $8.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $33,000. The tax rate is 34 percent. The sale price is estimated at $15.00 a unit, give or take 4 percent. What is the net income under the worst case scenario? $-4,217.40 $-8,905.10 $-8,990.73 $-6,390.00 $-8,562.60
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