ABC Co. has compiled these estimates for a new 1-year project: Sales of 1,650 units, ± 5 percent; sales price of $17 a unit, ± 1 percent; variable costs per unit of $7.49, ± 3 percent; fixed costs of $3,800, ± 1 percent; and depreciation of $2,200. The company bases its sensitivity analysis on the expected case scenario. If the company conducts a sensitivity analysis at a sales price of $16.25, what will be the earnings before interest and taxes?

A) $8,265
B) $8,454
C) $8,530
D) $8,709
E) $8,510


B) $8,454

Business

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