The sales price is estimated at 750 per unit plus or minus


Question - Leopard Machinery is analyzing a proposed project. The company expects to sell 2,300 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, plus or minus 3 percent. What is the operating cash flow based on this analysis?

Please show the calculation and explanation.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: The sales price is estimated at 750 per unit plus or minus
Reference No:- TGS02512182

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)