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A project has projected values of: unit sales = 1,650, price per unit = $19, variable cost per unit = $7, fixed costs per year

A project has projected values of: unit sales = 1,650, price per unit = $19, variable cost per unit = $7, fixed costs per year = $4,700. The depreciation is $1,100 a year and the tax rate is 21 percent. What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow?

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$912

$912

$1,089

$8.58

$1,303.50

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