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You are analyzing a project with anticipated sales of 7,770 units, plus or minus 3 percent. The variable cost per unit is $11 plus or
You are analyzing a project with anticipated sales of 7,770 units, plus or minus 3 percent. The variable cost per unit is $11 plus or minus 2 percent and the expected fixed costs are $259,000 plus or minus 2 percent. The sales price is estimated at $62 a unit, plus or minus 4 percent. The depreciation expense is $67,000 and the tax rate is 21 percent. What is the earnings before interest and taxes under the base-case scenario?
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