The projections for a new project show sales of 8,500 units, give or take 5 percent. The expected variable cost per unit is $28.
62 and the expected fixed cost is $164,000. The fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $62,000 and the tax rate is 35 percent. The sale price is estimated at $55 a unit, give or take 2 percent. The company bases its sensitivity analysis on the expected case scenario. What is the operating cash flow for a sensitivity analysis using total fixed costs of $170,000
