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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?
Foreseeable Risk
A potential danger or issue that a reasonable person would anticipate in a given set of circumstances, often discussed in negligence and tort cases.
Compensatory Damages
Money awarded equivalent to the actual value of injuries or damages sustained by the aggrieved party.
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A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group.
Liability
A legal responsibility or obligation, which can be civil or financial in nature.
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