A company is considering a new project with the following estimates: Price per Unit = $125; Variable Costs per Unit = $40; Annual Fixed Costs = $350,000; Annual Number of Units Sold = 3,000. The company believes all estimates are accurate only to within ±12%. Assume you were performing scenario analysis and computing the proposed project's expected annual operating cash flows under the worst-case scenario. What amount would you use in your analysis for total annual cash outflow from variable costs?

Answer rating: 100% (QA)

1 Given Data Price per Unit 125 Variable Costs per Unit 40 Annual Fixed Costs 350000 Annual Number o... View the full answer