Question: The estimates for a project include a sales quantity of 22,300 units, 4 percent, variable costs per unit of $8, and fixed costs of $127,800.

The estimates for a project include a sales quantity of 22,300 units, 4 percent, variable costs per unit of $8, and fixed costs of $127,800. Cost estimates are considered accurate within a range of 3 percent. The depreciation expense is $48,000. The sale price is estimated at $19 a unit, 6 percent. The company is conducting a sensitivity analysis on the sale price using a sale price estimate of $18. Using this value, what will be the earnings before interest and taxes?

Multiple Choice

$46,000

$52,500

$47,200

$50,500

$48,500

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