What letter choices are correct?

Ronnie's Coffee House is considering a project which will produce sales of $6,000 and increase cash expenses by $2,500. If the project is implemented, taxes will increase by $1,300. The additional depreciation expense will be $1,000. An initial cash outlay of $2,000 is required for net working capital. What is the amount of the operating cash flow using the top-down approach?

Select one:

a. $200

b. $1,500

c. $2,200

d. $3,500

e. $4,200

Ralph and Emma's is considering a project with total sales of $17,500, total variable costs of $9,800, total fixed costs of $3,500, and estimated production of 400 units. The depreciation expense is $2,400 a year. What is the contribution margin per unit?

Select one:

a. $4.50

b. $10.50

c. $14.14

d. $19.09

e. $19.25

Scenario analysis is different than sensitivity analysis:

Select one:

a. Because no economic forecasts are changed.

b. Because several variables are changed together.

c. Because scenario analysis deals with actual data versus sensitivity analysis which deals with a forecast.

d. Because it is short and simple.

e. Because it is a "by the seat of the pants" technique.