Problem:
Stellar Plastics is analyzing a proposed project. The company expects to sell 11,000 units, give or take 4 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6 percent range. The depreciation expense is $32,000. The tax rate is 34 percent. The sale price is estimated at $16.00 a unit, give or take 4 percent.
Required:
Question: What is the operating cash flow for a sensitivity analysis using total fixed costs of $32,000?
Note: Please answer in proper manner and show all computations