Financial intermediaries handle a larger flow of funds than do primary markets primarily because financial intermediaries: do not have to worry about information asymmetry. have government-regulated prices, so there is little competition. can lower transaction costs and increase liquidity for savers. have a government-provided monopoly.

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?