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The Creamery is analyzing a project with expected sales of 5,700 units, 5 percent. The expected variable cost per unit is $168 and the expected
The Creamery is analyzing a project with expected sales of 5,700 units, 5 percent. The expected variable cost per unit is $168 and the expected fixed costs are $424,000. Cost estimates are considered accurate within a 3 percent range. The depreciation expense is $156,000. The sales price is estimated at $339 per unit, 5 percent. The tax rate is 21 percent. The company is conducting a sensitivity analysis with fixed costs of $425,000. What is the OCF given this analysis?
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