What is the net income under the worst case scenario

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Reference no: EM131352267

Miller Mfg. is analyzing a proposed project. The company expects to sell 16,100 units, plus or minus 2 percent. The expected variable cost per unit is $21 and the expected fixed cost is $41,000. The fixed and variable cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $38,000. The tax rate is 34 percent. The sale price is estimated at $25 a unit, give or take 2 percent.

What is the net income under the worst case scenario?

A) –$19,298.56

B) –$19,525.28

C) –$10,616.08

D) -$1,446.88

E) –$20,607.68

Reference no: EM131352267

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