Problem:
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.
Requirement:
Question: What effect would an increase of $1 in the selling price have on the operating cash flow?
Note: Please show how to work it out.