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Rickos Rickos
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6 years ago
Boulangerie Bouffard expects to sell 1.25 million croissants next year for $1.50 each. Variable cost of a croissant is $0.80. Fixed costs are $150,000, depreciation $200,000 and the tax rate is 34%. If the bakery can increase the price of a croissant to $1.75 sales will fall by 50,000 croissants.  All other things equal, operating cash flow will increase or decrease by
A) $300,000 increase.
B) $148,500 increase.
C) $148,500 decrease.
D) $174,900 increase.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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LutionalLutional
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Rickos Author
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6 years ago
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