Over each of the next 4 years, Alliston Inc. expects to sell 52,300 units of its product at a price of $8.40 per unit. A
Posted: Sat Mar 19, 2022 5:55 pm
Over each of the next 4 years, Alliston Inc. expects to sell
52,300 units of its product at a price of $8.40 per unit. Annual
fixed costs are expected to be $18,100 and variable costs are
estimated to be $3.50 per unit. Based on an uncertain future, sales
quantity could be 10.20% higher or lower; sales price 17.10% higher
or lower; and both fixed and variable costs 5.50% higher or lower.
What is the company's profit before tax under the best-case
scenario?
a.
$134,533
b.
$289,528
c.
$359,186
d.
$193,613
e.
$335,006
52,300 units of its product at a price of $8.40 per unit. Annual
fixed costs are expected to be $18,100 and variable costs are
estimated to be $3.50 per unit. Based on an uncertain future, sales
quantity could be 10.20% higher or lower; sales price 17.10% higher
or lower; and both fixed and variable costs 5.50% higher or lower.
What is the company's profit before tax under the best-case
scenario?
a.
$134,533
b.
$289,528
c.
$359,186
d.
$193,613
e.
$335,006