A company sells Gizmos to consumers at a price of $81 per unit. The costs to produceGizmos
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A company sells Gizmos to consumers at a price of $81 per unit. The costs to produceGizmos is $45 per unit. The company will sell 17,000 Gizmosto consumers each year. The fixed costs incurred each year will be $130,000. There is an initial investment to produce the goods of $3,100,000 which will be depreciated straight line over 15 year life of the investmentto a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 31%.
a) What is operating cash flow each year?
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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