Question: how do we find that 2300+/- 4%= 0.96 260+/-5% = 1.05 740 +/-6%= 0.94 please show thanks 2. Leopard Machinery is analyzing a proposed project.

 how do we find that 2300+/- 4%= 0.96 260+/-5% = 1.05

how do we find that 2300+/- 4%= 0.96 260+/-5% = 1.05 740 +/-6%= 0.94 please show thanks

2. Leopard Machinery is analyzing a proposed project. The company expects to sell 2,300 units, give or take 4 percent. The expected cash variable cost per unit is $260 and the expected fixed costs (not including depreciation) are $589,000. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, plus or minus 6 percent. What is the sales revenue under the worst-case scenario? What is the operating cash flow at worst-case sales revenue? Q = 2,300 +/-4% V = 260 +/- 5% FC = 589,000 +/-5% D = 129,000 P = 750 +/-6% Under a worst-case scenario; Q = 2,300 * 0.96 = 2,208 V = 260 * 1.05 = 273 FC = 589,000 * 1.05 = 618,450 D = 129,000 P = 750 * 0.94 = 705 Sales revenue = Q *P = 2,208 * 705 = 1,556,640 NI = Q(P-V)-(FC+D) = 206,406 OCF = NI + D = 206,406 + 129,000 = 335,406

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