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Bobby car parts projects sales of its new filter for next year at 10,000 units priced at $230 each. The variable costs of an filter
Bobby car parts projects sales of its new filter for next year at 10,000 units priced at $230 each. The variable costs of an filter are expected to be $95. Fixed cash costs are expected to be $380,000 and depreciation $60,000. The tax rate is 30%. Bobby believes that any of its forecasts including fixed costs, but not depreciation or the tax rate which are known for certain, could be high or low by as much as 6%.
- What is the expected net operating profit after tax (NOPAT) for the worst case scenario?
- what is the expected net operating profit after tax (NOPAT) for the best case scenario?
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