The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $23. What are the earnings before interest and taxes?

A) $38,000
B) $44,000
C) $50,000
D) $59,500
E) $65,000

Question

Tatyanna Richardson · Accepted Answer

Final Answer : A, Explanation :  The correct answer is A because the earnings before interest and taxes is $38,000. This is calculated by taking the sales price of $23 and multiplying it by the number of units sold, which is 2,000. This gives us a total sales revenue of $46,000. We then subtract the cost of goods sold, which is $8,000, to get the earnings before interest and taxes of $38,000.

The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $23. What are the earnings before interest and taxes?

A) $38,000
B) $44,000
C) $50,000
D) $59,500
E) $65,000

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Learning Objectives

Learning Objectives

Related questions

The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $23. What are the earnings before interest and taxes?A) $38,000B) $44,000C) $50,000D) $59,500E) $65,000

Definitions

Learning Objectives

Learning Objectives

Related questions

The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $23. What are the earnings before interest and taxes?

A) $38,000
B) $44,000
C) $50,000
D) $59,500
E) $65,000