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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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