Cline Incorporated is expanding into the widget market. The sales price for each widget is estimated...

 

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Cline Incorporated is expanding into the widget market. The sales price for each widget is estimated to be $14.00, give or take 4 percent. The quantity of widgets sold is expected to be 11,000, plus or minus 4 percent. The expected variable cost per unit is $8.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $32,000. The tax rate is 34 percent. What is the net income under the worst case scenario? Cline Incorporated is expanding into the widget market. The sales price for each widget is estimated to be $14.00, give or take 4 percent. The quantity of widgets sold is expected to be 11,000, plus or minus 4 percent. The expected variable cost per unit is $8.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $32,000. The tax rate is 34 percent. What is the net income under the worst case scenario?

Answer rating: 100% (QA)

Heres how to calculate the net income under the worst case scenario for Cline Incorporated Step 1 Calculate minimum and maximum values for sales price ... View the full answer