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Leopard Machinery is analyzing a proposed project. The company expects to sell 2,300 units, give or take 6 percent. The expected cash variable cost per
Leopard Machinery is analyzing a proposed project. The company expects to sell 2,300 units, give or take 6 percent. The expected cash variable cost per unit is $260 and the expected fixed costs (not including depreciation) are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, plus or minus 5 percent. What is the sales revenue under the worst-case scenario? What is the operating cash flow at worst-case sales revenue?
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