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The Can-Do Co. is analyzing a proposed project.

The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or take 4 percent. The expected variable cost per unit is $7 and the expected fixed cost is $36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6 percent range. The depreciation expense is $30,000. The tax rate is 34 percent. The sale price is estimated at $14 a unit, give or take 5 percent. What is the earnings before interest and taxes under the BEST case scenario?

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Under Best Case -

Sales = 12,000 x (1+4%) = 12480 units

Variable Cost per unit ...

Solution Summary

This solution provides clear, step by step calculations for determining EBIT from the given information.

$2.19