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:

Power Distance

The extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

GLOBE Studies

A research project exploring how cultural variables affect leadership behavior, organizational practices, and the effectiveness of leadership styles across different cultures.

Cultural Norms

The shared expectations and rules that guide behavior of people within social groups.

Unequally Shared

Describes a situation where resources, responsibilities, or benefits are distributed disproportionately among members of a group.