The sales price is estimated at 64 a unit plus or minus 4


Company B is analyzing a proposed project. The company expects to sell 7,500 units, plus or minus 2 percent. The expected variable cost per unit is $9 and the expected fixed costs are $255,000. The fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $62,000. The tax rate is 34 percent. The sales price is estimated at $64 a unit, plus or minus 4 percent. If we don't ignore tax, what is the operating cash flow under the base case scenario? Show your work.

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Finance Basics: The sales price is estimated at 64 a unit plus or minus 4
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