Consider a 6-Year Project with the Following Information: Initial Fixed

question 33

Multiple Choice

Consider a 6-year project with the following information: initial fixed asset investment = $460,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $34; variable costs = $19; fixed costs = $188,600; quantity sold = 90,528 units; tax rate = 32 percent.What is the sensitivity of OCF to changes in quantity sold?

• A)$10.20 per unit
• B)$11.16 per unit
• C)$11.38 per unit
• D)$12.33 per unit
• E)$12.54 per unit