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Problem:

You are analyzing a project and have developed the following estimates: unit sales = 3,100, price per unit = $211, variable cost per unit = $115, fixed costs = $164,000. The depreciation is $59,000 a year and the tax rate is 35 percent.

Required:

Question: What effect would the sale of one more unit have on the operating cash flow?

Note: Provide support for your rationale.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91170031

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