Miller Mfg. is analyzing a proposed project. The company expects to sell 16,100 units, plus or minus 2 percent. The expected variable cost per unit is $21 and the expected fixed cost is $41,000. The fixed and variable cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $38,000. The tax rate is 34 percent. The sale price is estimated at $25 a unit, give or take 2 percent.
What is the net income under the worst case scenario?
A) –$19,298.56
B) –$19,525.28
C) –$10,616.08
D) -$1,446.88
E) –$20,607.68