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Destroy Extermination Services projects next year's sales of its new X-Ray termite inspection service at 5,000 inspections priced at $175 each. The variable costs per
Destroy Extermination Services projects next year's sales of its new X-Ray termite inspection service at 5,000 inspections priced at $175 each. The variable costs per inspection are expected to be $87.50. Fixed cash costs are expected to be $90,000 and depreciation $110,000. The company's marginal tax rate is 34%. Variable Base Case Best case Worst Case Quantity (Q) 5000 Increase by 10% Decrease by 10% Price (P) $ 175.00 Increase by 10% Decrease by 10% Variable cost (VC) $ 87.50 Decrease by 10% Increase by 10% Cash Fixed cost (FC) $ 90,000.00 Decrease by 10% Increase by 10% What is the expected operatingg cash flows (OCF) for the base case? $237,500 $266,750 $383,240 $156,750
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