Describe in ocf for every additional unit sold


Let 2-year project with following information: initial fixed asset investment = $495,000; straight line depreciation to zero over 2-year life; selling price = $39; zero salvage value; fixed costs = $210,000; variable costs = $20;  quantity sold = 150,000 units; tax rate = 31 percent. How sensitive is Operating Cash Flow (OCF)to changes in quantity sold? Define your answer in terms of dollar amount change (increase or decrease) in OCF for every additional unit sold.

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Project Management: Describe in ocf for every additional unit sold
Reference No:- TGS033052

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