The Jordon Co. is analyzing a proposed project. The company expects to sell 14,200 units. The expected variable cost per unit is $8.50 and the expected fixed cost is $38,000. The depreciation expense is $42,000. The tax rate is 32 percent. The sale price is estimated at $19.75 a unit. The company bases its sensitivity analysis on the expected case scenario.

What is the earnings before interest and taxes (EBIT) under the expected case scenario?

a. $89,570

b. $81,750

c. $79,750

d. $78,450

e. $78,250

What is the Operating Cash Flow (OCF) under the expected case scenario?

a. $97,340

b. $96,230

c. $96,100

d. $95,900

e. $95,700

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