Miller Mfg

question 26

Multiple Choice

Miller Mfg.is analyzing a proposed project.The company expects to sell 8,000 units,plus or minus 2 percent.The expected variable cost per unit is $11 and the expected fixed costs are $287,000.The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range.The depreciation expense is $68,000.The tax rate is 32 percent.The sales price is estimated at $64 a unit,give or take 3 percent.What is the net income under the worst case scenario?

• A)$8,578
• B)$18,228
• C)$15,846
• D)$20,704
• E)$24,696

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Definitions:

National Conference

A large meeting focusing on a particular subject or field, gathering specialists and interested parties from across the country.

Sustainable Marketing

Marketing strategies and practices that not only benefit the company but also society and the environment, focusing on long-term ecological and social health.

Better Cotton Initiative

A global, non-profit organization seeking to improve cotton production standards for the environment, farming communities, and the economies of cotton-producing areas.

Environmental Marketing

A marketing strategy that emphasizes a company's commitment to sustainability and environmentally friendly practices in its products, services, and operations.