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The Variable Cost Per Unit for a Proposed Project Is

Question 81

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The variable cost per unit for a proposed project is $8.48 and the annual fixed costs are $27,400.These costs can vary by ± 5 percent.Annual depreciation is $13,290 and the tax rate is 21 percent.The sale price is $13.29 a unit,± 2 percent.If the firm bases its sensitivity analysis on the expected outcome,what will be the operating cash flow for a sensitivity analysis of 9,200 units?


A) $14,066.02
B) $16,103.98
C) $22,078.40
D) $11,554.50
E) $18,385.60

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