CanDo SA Is Analyzing a Proposed Project

question 17

Multiple Choice

CanDo SA is analyzing a proposed project.The company expects to sell 12,000 units, give or take 4%.The expected variable cost per unit is €7 and the expected fixed cost is €36,000.The fixed and
Variable cost estimates are considered accurate within a plus or minus 6% range.The depreciation
Expense is €30,000.The tax rate is 34%.The sale price is estimated at €14 a unit, give or take 5%.
What is the operating cash flow for a sensitivity analysis on the expected case scenario using total
fixed costs of €32,000?

• A)€14,520
• B)€16,520
• C)€22,000
• D)€44,520
• E)€52,000

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