ABC Co.has compiled these estimates for a new 1-year project: Sales of 1,650 units,± 5 percent; sales price of $17 a unit,± 1 percent; variable costs per unit of $7.49,± 3 percent; fixed costs of $3,800,± 1 percent; and depreciation of $2,200.The company bases its sensitivity analysis on the expected case scenario.If the company conducts a sensitivity analysis at a sales price of $16.25,what will be the earnings before interest and taxes?
A)$8,265
B)$8,454
C)$8,530
D)$8,709
E)$8,510

Question

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The Answer of ABC Co.has compiled these estimates for a new 1-year project: Sales of 1,650 units,± 5 percent; sales price of $17 a unit,± 1 percent; variable costs per unit of $7.49,± 3 percent; fixed costs of $3,800,± 1 percent; and depreciation of $2,200.The company bases its sensitivity analysis on the expected case scenario.If the company conducts a sensitivity analysis at a sales price of $16.25,what will be the earnings before interest and taxes?
A)$8,265
B)$8,454
C)$8,530
D)$8,709
E)$8,510

ABC CoHas Compiled These Estimates for a New 1-Year Project: Sales