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ABC Corporation is analyzing a project with the following estimates: Unit sales = 1,500 Price per unit = $70 Variable cost per unit = $37
ABC Corporation is analyzing a project with the following estimates:
Unit sales = 1,500
Price per unit = $70
Variable cost per unit = $37
Fixed costs per year = $12,500
The depreciation is $7,500 per year and the tax rate is 21%.
What affect would an increase of $1 in the selling price have on the operating cash flow?
$1,327.20
$1,249.65
$1,185.00
$2,510.50
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