Given the following information

Accounting May 27, 2021

Given the following information .1 price per unit = $15, variable cost per unit = $6, the initial cost = $10000, the number of years = 4, the fixed cost = $30000, the .Quantity = 6500 and the Tax = 20% ?find the operating cash flow (*,i6a.; 10)
$23300 $26500 $30000 $5200

Expert Solution

Computation of Operating Cash Flow:
Particulars	Amount
Sales (6500*$15)	97500
Less: Variable Cost (6500*$6)	39000
Contribution Margin (Sales - Variable Cost)	58500
Less: Fixed Cost	30000
Less: Depreciation ($10,000/4)	2500
Profit before Tax	26000
Less: Tax @20%	5200
Profit after Tax	20800
Add: Depreciation	2500
Operating Cash Flow	23300

So, the correct option is 1st "$23,300".

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