Earnings before interest and taxes under the base case

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Miller Mfg. is analyzing a proposed project. The company expects to sell 11,000 units, give or take 4 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6 percent range. The depreciation expense is $29,000. The tax rate is 34 percent. The sale price is estimated at $13.00 a unit, give or take 3 percent.

What is the earnings before interest and taxes under the base case scenario?

Reference no: EM13850096

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