Stellar Plastics is analyzing a proposed project. The company expects to sell 14,000 units, give or take 3 percent. The expected variable cost per unit is $14 and the expected fixed cost is $27,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $30,000. The tax rate is 34 percent. The sale price is estimated at $18 a unit, give or take 3 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $30,000?

Multiple Choice

• $17,160

• $26,000

• $1,360

• $27,360

• $2,640