operational management

| December 8, 2015

Miller Mfg. is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 4 percent. The expected variable cost per unit is $8.00 and the
expected fixed cost is $36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is
$32,000. The tax rate is 34 percent. The sale price is estimated at $16.00 a unit, give or take 3 percent.

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