The company expects to sell 2,500 units, give or take 5%. The expected cash variable cost per unit is $250 and the expected fixed costs (not including depreciation) are $590,000. Fixed cost and variable cost are considered accurate within a plus or minus 4% range. The depreciation expense is $139,000. The sales price is estimated at $760 per unit, plus or minus 5%. Assume taxes are $0. What is the sales revenue under the worst-case scenario? What is the operating cash flow under the worst-case scenario?
The company expects to sell 2,500 units, give or take 5%. The expected cash variable cost per unit is $250 and the expected fixed costs (not including depreciation) are $590,000. Fixed cost and variable cost are considered accurate within a plus or minus 4% range. The depreciation expense is $139,000. The sales price is estimated at $760 per unit, plus or minus 5%. Assume taxes are $0. What is the sales revenue under the worst-case scenario? What is the operating cash flow under the worst-case scenario?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 103.
Subject:- finance
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