Happy Joes Engineering company is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 3 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 6 percent range. The depreciation expense is $31,000. The tax rate is 34 percent. The sale price is estimated at $15.00 a unit, give or take 4 percent.
What is the net income under the worst case scenario?
$533.81
$1,116.31
$808.80
$1,148.82
$1,083.79