Question 4 5 pts Jamie, from MSM CPA Firm, is auditing RC Airplanes for Year 3. Jamie expects the users of the financial statements to have a medium to high level of tolerance for misstatements and to be most interested in earnings. MSM CPA Firm has the following audit guidance for calculating materiality: Benchmark Low Low to Med. Medium Med. to High High Profit before Tax 9% 8% 7% 6% 5% Total Assets 2% 1.75% 1.50% 1% .50% Benchmark selected should be the one that is most relevant to users of the financial statements. Jamie has obtained the following information from RC Airlines Year 3 financial statements. Revenues: $1,750,000 Total Assets: $850,000 Profit before Tax: $250,000 Based on the facts above, what is the overall materiality level that Jamie should use for RC Airlines? $12,750 $15,000 $17,500 $32,500