The Quick Producers Co. is analyzing a proposed project. The company expects to sell 10,000 units, give or take 5 percent. The expected variable cost per unit is $6 and the expected fixed cost is $29,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $25,000. The tax rate is 34 percent. The sale price is estimated at $13 a unit, give or take 6 percent.

What is the net income under the best case scenario?
A) $5,440.00
B) $10,665.80
C) $15,846.60
D) $20,704.20
E) $24,696.80

Question

The Quick Producers Co. is analyzing a proposed project. The company expects to sell 10,000 units, give or take 5 percent. The expected variable cost per unit is $6 and the expected fixed cost is $29,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $25,000. The tax rate is 34 percent. The sale price is estimated at $13 a unit, give or take 6 percent.

What is the net income under the best case scenario?

What is the net income under the best case scenario?
A) $5,440.00
B) $10,665.80
C) $15,846.60
D) $20,704.20
E) $24,696.80

Quizplus · Accepted Answer

The Answer of The Quick Producers Co. is analyzing a proposed project. The company expects to sell 10,000 units, give or take 5 percent. The expected variable cost per unit is $6 and the expected fixed cost is $29,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $25,000. The tax rate is 34 percent. The sale price is estimated at $13 a unit, give or take 6 percent.

What is the net income under the best case scenario?
A) $5,440.00
B) $10,665.80
C) $15,846.60
D) $20,704.20
E) $24,696.80