The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $19. Using this value, the earnings before interest and taxes will be:

A) $20,000
B) $23,000
C) $28,000
D) $37,000
E) $40,000

Question

A'Keyah Hardeman · Accepted Answer

Final Answer : A, Explanation :  The correct answer is A because the earnings before interest and taxes is equal to the sales price minus the cost of goods sold. The cost of goods sold is equal to the sales price multiplied by the cost of goods sold percentage. The cost of goods sold percentage is equal to the cost of goods sold divided by the sales price. The cost of goods sold is equal to the sales price multiplied by the cost of goods sold percentage. The cost of goods sold percentage is equal to the cost of goods sold divided by the sales price. The cost of goods sold is equal to the sales price multiplied by the cost of goods sold percentage. The cost of goods sold percentage is equal to the cost of goods sold divided by the sales price. The cost of goods sold is equal to the sales price multiplied by the cost of goods sold percentage. The cost of goods sold percentage is equal to the cost of goods sold divided by the sales price. 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The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $19. Using this value, the earnings before interest and taxes will be:

A) $20,000
B) $23,000
C) $28,000
D) $37,000
E) $40,000

Definitions

Learning Objectives

Learning Objectives

Related questions

The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $19. Using this value, the earnings before interest and taxes will be:A) $20,000B) $23,000C) $28,000D) $37,000E) $40,000

Definitions

Learning Objectives

Learning Objectives

Related questions

The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $19. Using this value, the earnings before interest and taxes will be:

A) $20,000
B) $23,000
C) $28,000
D) $37,000
E) $40,000