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The Marina Co. is analyzing a proposed project. The company expects to sell 12,000 units. The...

The Marina Co. is analyzing a proposed project. The company expects to sell 12,000 units. The expected variable cost per unit is $7 and the expected fixed cost is $32,000. The depreciation expense is $30,000. The tax rate is 34%. The sale price is estimated at $14 a unit. The company bases its sensitivity analysis on the expected case scenario.

(a) What is the earnings before interest and taxes (EBIT) under the expected case scenario?


(b) What is the operating cash flow for the expected case scenario?

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