What effect would an increase of 1 in the selling price


Newton Industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. The depreciation is $14,700 a year and the tax rate is 34%. What effect would an increase of $1 in the selling price have on the operating cash flow? How much?

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Finance Basics: What effect would an increase of 1 in the selling price
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