Question
Consider the following estimates for a project a company is considering: Annual Fixed Costs = $900,000; Variable Costs per Unit = $700; Price per
Consider the following estimates for a project a company is considering: Annual Fixed Costs = $900,000; Variable Costs per Unit = $700; Price per Unit = $1,200; Annual Number of Units Sold = 2,000. The company believes all estimates to be accurate only to within +16%. If you were using scenario analysis to calculate the project's expected annual operating cash flows, what amount for total annual cash inflow from sales would you include for the best-case scenario?
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
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