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New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, 3 percent. The expected variable cost per unit is $220
New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, 3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, 2 percent. What is the sales revenue under the worst-case scenario? what is the net income in worst case scenario? (Assume a tax rate or 21 percent) Unit sales: Price per unit: Variable costs per unit: Fixed costs per year: Base Case Income Statement Sales Variable costs Fixed costs Depreciation EBIT Tax
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