The projections for a new one-year project show sales of 8,500 units,± 5 percent; variable costs per unit of $28.62,± 3 percent; and fixed costs of $164,000,± 3 percent.Depreciation is $62,000 and the tax rate is 23 percent.The sale price is $55 a unit,± 2 percent.The company bases its sensitivity analysis on the expected scenario.What is the operating cash flow for a sensitivity analysis using total fixed costs of $170,000?
A) $62,406.67
B) $58,219.90
C) $61,311.07
D) $56,017.10
E) $52,048.80
Correct Answer:
Verified
Q54: In a decision tree,caution should be used
Q55: A project has a projected sales price
Q56: A firm is reviewing a project with
Q57: The variable cost per unit for a
Q58: Adept Co.is analyzing a proposed project with
Q60: A project has estimated sales of 2,600
Q61: Thompson's has determined that a new project
Q62: A project with a life of one
Q63: The Quorum Company has a prospective 6-year
Q64: The Can-Do Co.is analyzing a project with
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents