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The expected variable cost per unit for a proposed project is $8.48 and the expected fixed cost is $27,400. The cost estimates have a plus
The expected variable cost per unit for a proposed project is $8.48 and the expected fixed cost is $27,400. The cost estimates have a plus or minus range of 5 percent. The depreciation expense is $13,290 and the tax rate is 35 percent. The sale price is estimated at $13.29 a unit, give or take 2 percent. If the firm bases its sensitivity analysis on the base case estimates, what will be the operating cash flow for a sensitivity analysis of 9,200 units?
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