Your required answer is option D i.e.$-26,807.10
In worst case scenario we see to what extant loss can go and therefore in this case we take least expected revenue and highest expected expenses.
Particulars | Worst Case Scenario |
Sell Unit | 10670 |
Sale Price | 13.65 |
Variable Cost per Unit | 8.48 |
Fixed Cost | 37100 |
Sales | 131774.5 |
Less: Variable Cost | 90481.6 |
Less: Fixed Cost | 37100 |
Less: Depreciation Expense | 31000 |
Earning Before Interest and Tax | -26807.10 |
I hope this clear your doubt.
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