How sensitive is ocf to an increase of one unit in the


Consider a three-year project with the following information: initial fixed asset investment = $347,600; straight-line depreciation to zero over the three-year life; zero salvage value; price per unit = $49.99; variable costs per unit = $30.82; fixed costs per year = $187,000; quantity sold per year = 65,500 units; tax rate = 35 percent. How sensitive is OCF to an increase of one unit in the quantity sold? Select one: a. $12.46 b. $11.67 c. $867 d. $9.08 e. $13.40

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Financial Management: How sensitive is ocf to an increase of one unit in the
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