QUESTION

89. You are analyzing a project and have developed the following estimates: unit sales = 2,600, price per unit = $56, va

Category: Business
Subject: Finance
Due Date: 02/03/2016
Question Asked: 2016-02-03 03:15:11

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89. You are analyzing a project and have developed the following estimates: unit sales = 2,600, price per unit = $56, variable cost per unit = $39, fixed costs = $24,700. The depreciation is $15,800 a year and the tax rate is 33 percent. What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow? 
A. -$2,600
B. -$1,742
C. -$823
D. $1,742
E. $2,600


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89. You are analyzing a project and have developed the following estimates: unit sales = 2,600, price per unit = $56, va

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Posted on 2016-02-03 03:15:11

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