Question: The variable cost per unit for a proposed project is $6.52 and the annual fixed costs are $24,600. These costs can vary by 3 percent.

The variable cost per unit for a proposed project is $6.52 and the annual fixed costs are $24,600. These costs can vary by 3 percent. Annual depreciation is $12,730 and the tax rate is 21 percent. The sale price is $17 a unit, 2 percent. If the firm bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 10,600 units?

What will be the operating cash flow for a sensitivity analysis of 10,500 units?

OCF for 10,500 units =

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