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A company is considering a new project with the following estimates: Price per Unit = $125; Variable Costs per Unit =$40; Annual Fixed Costs =$350,000;
A company is considering a new project with the following estimates: Price per Unit = \$125; Variable Costs per Unit =$40; Annual Fixed Costs =$350,000; Annual Number of Units Sold =3,000. The company believes all estimates are accurate only to within 12%. Assume you were peforming scenario analysis and computing the proposed project's expected annual operating cash flows under the worst-case scenario. What amount would you use in your analysis for total annual cash outflow from variable costs? 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
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