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The Meldrum Co. expects to sell 3,000 units, 15 percent, of a new product. The variable cost per unit is $8, 5 percent; annual fixed
The Meldrum Co. expects to sell 3,000 units, 15 percent, of a new product. The variable cost per unit is $8, 5 percent; annual fixed costs are $13,500, 5 percent; annual depreciation is $4,000; and the sale price is $18 a unit, 2 percent. The company's tax rate is 21 percent. What is the amount of operating cash flow under the pessimistic scenario? Group of answer choices
$8,256
$17,854
$13,875
$20,035
None of these are correct.
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