Question: The variable cost per unit for a proposed project is $6.66 and the annual fixed costs are $24,800. These costs can vary by pm 7

 The variable cost per unit for a proposed project is $6.66

The variable cost per unit for a proposed project is $6.66 and the annual fixed costs are $24,800. These costs can vary by \pm 7 percent. Annual depreciation is $12,770 and the tax rate is 21 percent. The sale price is $15 a unit, \pm 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 10,500 units? OCF for 10,500 units = Allowed attempts: 3 What will be the operating cash flow for a sensitivity analysis of 10,400 units? OCF for 10,400 units =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!