Question: The variable cost per unit for a proposed project is $8.27 and the annual fixed costs are $27,100. These costs can vary by 2 percent.

The variable cost per unit for a proposed project is $8.27 and the annual fixed costs are $27,100. These costs can vary by 2 percent. Annual depreciation is $13,230 and the tax rate is 21 percent. The sale price is $16 a unit, 5 percent. If the firm bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 9,350 units?

OCF for 9,350 units =

What will be the operating cash flow for a sensitivity analysis of 9,250 units?

OCF for 9,250 units =

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