Webster United is considering adding a new product to their lineup. The company expects to sell 15,000 units, give or take 3 percent, of this item. The expected variable cost per unit is $12 and the
Expected total ﬁxed cost is $21,000. The ﬁxed and variable cost estimates are considered accurate
Within a plus or minus 5 percent range. The depreciation expense is $22,000. The tax rate is 35
Percent. The sale price is estimated at $15 a unit, give or take 2 percent.
What is the earnings before interest and taxes under the best case scenario?
A) $17,255
B) $17,772
C) $18,305
D) $18,824
E) $19,355

Question

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The Answer of Webster United is considering adding a new product to their lineup. The company expects to sell 15,000 units, give or take 3 percent, of this item. The expected variable cost per unit is $12 and the
Expected total ﬁxed cost is $21,000. The ﬁxed and variable cost estimates are considered accurate
Within a plus or minus 5 percent range. The depreciation expense is $22,000. The tax rate is 35
Percent. The sale price is estimated at $15 a unit, give or take 2 percent.
What is the earnings before interest and taxes under the best case scenario?
A) $17,255
B) $17,772
C) $18,305
D) $18,824
E) $19,355

Webster United Is Considering Adding a New Product to Their