The Tall Stack expects to sell 3,000 units,±10 percent.The expected variable cost per unit is $7,±3 percent,and the expected fixed costs are $13,700,±1 percent.The depreciation expense is $6,870.The sale price is estimated at $16 a unit,±2 percent.The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $15.What will be the earnings before interest and taxes?
A) $6,430
B) $10,300
C) $4,300
D) $3,430
E) $13,130
Correct Answer:
Verified
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