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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.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92525353
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