You are analyzing a project and have developed the following estimates. The depreciation is $7,400 a...

Transcribed Image Text:

You are analyzing a project and have developed the following estimates. The depreciation is $7,400 a year and the tax rate is 36 percent. What effect would an increase of $1 in the selling price have on the operating cash flow? Unit sales Price per unit Variable cost per unit Fixed costs $1,811 $1,803 $1,667 $1,792 $1,748 Base Case 2,800 $110 $ 87 $12,000 You are analyzing a project and have developed the following estimates. The depreciation is $7,400 a year and the tax rate is 36 percent. What effect would an increase of $1 in the selling price have on the operating cash flow? Unit sales Price per unit Variable cost per unit Fixed costs $1,811 $1,803 $1,667 $1,792 $1,748 Base Case 2,800 $110 $ 87 $12,000