A Project Has Projected Values Of: Unit Sales = 1,650

question 2

Multiple Choice

A project has projected values of: unit sales = 1,650, price per unit = $19, variable cost per unit = $7, fixed costs per year = $4,700.The depreciation is $1,100 a year and the tax rate is 34 percent.What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow?

• A)-$8.58
• B)-$1,089
• C)-$912
• D)$1,089
• E)$912

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