The Can-Do Co

question 73

Multiple Choice

The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is $36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is estimated at $14 a unit, give or take 5%. The company bases its sensitivity analysis on the expected case scenario.
-What is the earnings before interest and taxes under the optimistic case scenario?

• A)$22,694.40
• B)$24,854.40
• C)$37,497.60
• D)$52,694.40
• E)$67,947.60

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Definitions:

Cycloheptatrienyl Cation

A positively charged aromatic species, also known as the tropylium ion, with a seven-carbon ring structure and three double bonds providing aromatic stability.

π Network

A collection of π bonds (p-orbital overlap contributing to bonding in molecules) interconnected in a molecule, fundamental to the structure and stability of aromatic compounds.

Acidic H Atoms

Hydrogen atoms in a molecule that can be donated as protons during an acid-base reaction.

AntiAromatic

Describes molecules that do not follow Hückel's rule, often destabilized and non-planar, lacking aromatic stabilization.