The Variable Cost Per Unit for a Proposed Project Is

question 81

Multiple Choice

The variable cost per unit for a proposed project is $8.48 and the annual fixed costs are $27,400.These costs can vary by ± 5 percent.Annual depreciation is $13,290 and the tax rate is 21 percent.The sale price is $13.29 a unit,± 2 percent.If the firm bases its sensitivity analysis on the expected outcome,what will be the operating cash flow for a sensitivity analysis of 9,200 units?

• A)$14,066.02
• B)$16,103.98
• C)$22,078.40
• D)$11,554.50
• E)$18,385.60

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Definitions:

Customer Service

Activities and services provided by a company to support and enhance the satisfaction of its customers.

Competitive Prices

Pricing strategy that involves setting prices at the same level or slightly lower than competitors to attract customers.

Cost Differentiation Strategy

A business strategy aiming to offer products or services differentiable from competitors' based on features, quality, or service rather than competing primarily on price.

Product Differentiation Strategy

A business approach aimed at distinguishing a product or service from others in the market to attract a specific customer segment.