You would like to compare Ideko's profitability to its competitors' profitability using the EBITDA/sales multiple. Given Ideko's current sales of $73.2 million use the information in the table to compute a range of EBITDA for Ideko assuming it is run as profitably as its competitors.

Ideko Financial Ratios Comparison, Mid-2005

Ratio Oakley, Inc. Luxottica

Group Nike, Inc. Sporting Goods Industry

P/E 24.8 28.1 18.3 20.3

EV/Sales 1.8 2.8 1.4 1.4

EV/EBITDA 11.5 14.4 9.2 11.3

EBITDA/Sales 16.9% 18.6% 15.9% 12.2%

(Select the best choice below)

A. This implies an EBITDA range of $11.639 million to $13.615 million.

B. This implies an EBITDA range of $8.930 million to $12.371 million

C. This implies an EBITDA range of $8.930 million to $13.615 million

D. This implies an EBITDA range of $11.639 million to $12.371 million.