What is the operating cash flow for a sensitivity analysis

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Reference no: EM131995195

Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, give or take 3 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is $36,000.

The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $31,000. The tax rate is 34 percent.

The sale price is estimated at $15.00 a unit, give or take 3 percent.

What is the operating cash flow for a sensitivity analysis using total fixed costs of $32,000?

Reference no: EM131995195

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