Problem
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?