Question: The variable cost per unit for a proposed project is $6.38 and the annual fixed costs are $24,400. These costs can vary by 5 percent.

The variable cost per unit for a proposed project is $6.38 and the annual fixed costs are $24,400. These costs can vary by 5 percent. Annual depreciation is $12,690 and the tax rate is 21 percent. The sale price is $11 a unit, 4 percent. If the firm bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 10,700 units?

OCF for 10,700 units =

Question 2 What will be the operating cash flow for a sensitivity analysis of 10,600 units?

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