A company is considering a new project with the following estimates: Price per Unit =...
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Accounting
A company is considering a new project with the following estimates: Price per Unit = $125; Variable Costs per Unit = $40; Annual Fixed Costs = $350,000; Annual Number of Units Sold = 3,000. The company believes all estimates are accurate only to within 12%. Assume you were peforming scenario analysis and computing the proposed project's expected annual operating cash flows under the worst-case scenario. What amount would you use in your analysis for total annual cash outflow from variable costs?
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