HiLo Mfg Is Analyzing a Project with Anticipated Sales of 12,500

question 38

Multiple Choice

HiLo Mfg. is analyzing a project with anticipated sales of 12,500 units, ±2 percent. The variable cost per unit is $13, ± 2 percent, and the expected fixed costs are $237,000, ±1 percent. The sales price is estimated at $69 a unit, ±3 percent. The depreciation expense is $68,000 and the tax rate is 22 percent. What is the earnings before interest and taxes under the base-case scenario?

• A) $368,500
• B) $421,000
• C) $395,000
• D) $414,900
• E) $427,500

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Definitions:

Millisecond Basis

A measure of time often used to quantify incredibly brief intervals, especially relevant in precise scientific experiments and time-sensitive technological processes.

Electrical Activity

Movement of charged particles, such as electrons, which can occur within biological systems or electronic circuits.

Autonomic Nervous System

Part of the nervous system that controls involuntary bodily functions, such as heart rate, digestion, and respiratory rate.

Sympathetic

Relating to the part of the autonomic nervous system that typically increases alertness, heart rate, and blood pressure in response to stress.