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Newton Industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit

Newton Industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. The depreciation is $14,700 a year and the tax rate is 40 percent. What effect would an increase of $2 in the selling price have on the operating cash flow?

$1

$82,368

$83,448

$5,760

$4,823

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