The sales price is estimated at 64 a unit give or take 3


Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 2 percent. The expected variable cost per unit is $11 and the expected fixed costs are $287,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $68,000. The tax rate is 32 percent. The sales price is estimated at $64 a unit, give or take 3 percent. What is the operating cash flow under the best case scenario?

A. $144,150
B. $148,475
C. $107,146
D. $168,630
E. $174,220

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The sales price is estimated at 64 a unit give or take 3
Reference No:- TGS0628804

Expected delivery within 24 Hours