Problem:
You are analyzing a project and have developed the following estimates: unit sales = 3,100, price per unit = $211, variable cost per unit = $115, fixed costs = $164,000. The depreciation is $59,000 a year and the tax rate is 35 percent.
Required:
Question: What effect would the sale of one more unit have on the operating cash flow?
Note: Provide support for your rationale.