Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company sells widgets to consumers at a price of

A company sells Widgets to consumers at a price of $112 per unit. The cost...

70.2K

Verified Solution

Question

Accounting

A company sells Widgets to consumers at a price of $112 per unit. The cost to produce Widgets is $49 per unit. The company will sell 19,000 Widgets to consumers each year. The fixed costs incurred each year will be $180,000. There is an initial investment to produce the goods of $2,200,000 which will be depreciated straight line over the 15 year life of the investment to a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 35%.
What is operating cash flow each year?
Click "Verify" to proceed to the next part of the question.
Section Attempt 1 of 1
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students