Question: The variable cost per unit for a proposed project is $8.13 and the annual fixed costs are $26,900. These costs can vary by 4 percent.

The variable cost per unit for a proposed project is $8.13 and the annual fixed costs are $26,900. These costs can vary by 4 percent. Annual depreciation is $13,190 and the tax rate is 21 percent. The sale price is $18 a unit, 3 percent. If the firm bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 9,450 units?

Question 2

What will be the operating cash flow for a sensitivity analysis of 9,350 units?

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