Stellar Plastics Is Analyzing a Proposed Project

question 10

Multiple Choice

Stellar Plastics is analyzing a proposed project.The company expects to sell 12,000 units,plus or minus 5 percent.The expected variable cost per unit is $3.20 and the expected fixed costs are $30,000.The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range.The depreciation expense is $24,000.The tax rate is 34 percent.The sales price is estimated at $7.50 a unit,plus or minus 4 percent.What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000?

• A)$19,580
• B)$21,756
• C)$27,210
• D)$31,460
• E)$37,540

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Definitions:

Leader Irrelevance

The concept that leadership can sometimes have little to no effect on an organization's success or outcomes, often due to external factors.

Business Outcomes

The results or outputs that stem from the activities and strategies of a business or organization.

Centralized Leadership

A management structure where decision-making is concentrated at the top levels of the organization.

Managerial Succession

The process of planning and implementing the transition of leadership roles within an organization to ensure continuity.