A project currently generates sales of $16 million, variable costs equal 50% of sales, and fixed costs are 3.2 million.
A project currently generates sales of $16 million, variable costs
equal 50% of sales, and fixed costs are 3.2 million. The firm’s tax rate is 40%. Assume all sales and expenses are cash items.
A. What are the effects on cash flow, if sales increase from $16 million to $17.6 million? Enter dollar amount
Cash flow increases by:
b. What are the effects on cash flow, if variable costs increase to 60% of sales? Enter dollar amount
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
Cash flow decreases by:
