The Meldrum Co. expects to sell 3,000 units, ± 15 percent, of a new product. The variable cost per unit is $8, ± 5 perce
Posted: Tue Jan 18, 2022 12:58 pm
The Meldrum Co. expects to sell 3,000 units, ± 15 percent, of a
new product. The variable cost per unit is $8, ± 5 percent; annual
fixed costs are $13,500, ± 5 percent; annual depreciation is
$4,000; and the sale price is $18 a unit, ± 2 percent. The
company's tax rate is 21 percent.
What is the amount of operating cash flow under the pessimistic
scenario?
Group of answer choices
$8,256
$17,854
$13,875
$20,035
None of these are correct.
new product. The variable cost per unit is $8, ± 5 percent; annual
fixed costs are $13,500, ± 5 percent; annual depreciation is
$4,000; and the sale price is $18 a unit, ± 2 percent. The
company's tax rate is 21 percent.
What is the amount of operating cash flow under the pessimistic
scenario?
Group of answer choices
$8,256
$17,854
$13,875
$20,035
None of these are correct.