Miller Mfg

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,plus or minus 3 percent.What is the earnings before interest and taxes under the base case scenario?

A) $46,920
B) $93,160
C) $114,920
D) $69,000
E) $58,480