The Quick Producers Co

question 30

Multiple Choice

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