The Can-Do Co

question 22

Multiple Choice

The Can-Do Co.is analyzing a project with anticipated sales of 12,000 units,± 4 percent; variable costs per unit of $7,± 6 percent; and annual fixed costs of $36,000,± 6 percent.Annual depreciation is $29,600 and the tax rate is 21 percent.The sale price is $14.99 a unit,± 1 percent.What is the operating cash flow under the optimistic scenario?

• A)$63,876
• B)$54,309
• C)$56,208
• D)$59,311
• E)$64,499

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Definitions:

Writer

An individual who engages in the act of producing written content, such as books, articles, or other textual materials.

Teacher

An individual who instructs or educates others, typically in an academic setting.

Simple Probability

The likelihood of a single event occurring, calculated by dividing the number of favorable outcomes by the total number of possible outcomes.

Mr. And Mrs. Jones

A figurative term used to describe the average or stereotypical suburban couple, often used in the context of social competition and the pursuit of material wealth.