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A company has the following estimates for a new project it's considering: Price = $600 per unit; Variable Costs = $180 per unit; Fixed Costs
A company has the following estimates for a new project it's considering: Price = $600 per unit; Variable Costs = $180 per unit; Fixed Costs = $8,700,000 per year; Quantity = 24,000 units sold per year. Assume the company believes all of its estimates are accurate only to within +16%. If you were peforming scenario analysis and calculating the project's expected annual operating cash flows under the worst-case scenario, what amount would you use for total annual cash outflow from variable costs (i.e. multiplying variable cost per unit by quantity of units sold per year under best-case scenario)? Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50. Numeric Response
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