Question
Environment Friendly Products is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per
Environment Friendly Products is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per unit is $3.20 and the expected fixed costs are $30,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $24,000. The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000? Group of answer choices $37,540 $31,460 $21,756 $27,210
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