You are analyzing a project and have developed the following estimates: unit sales = 1,320,price per unit = $79,variable cost per unit = $43,fixed costs = $24,900.The depreciation is $11,300 a year and the tax rate is 40 percent.What effect would an increase of $1 in the selling price have on the operating cash flow?
A) $792
B) $1,249
C) $1,320
D) $1,406
E) $1,433
Correct Answer:
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