2. [6] We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project. Sales are projected at 51,000 units per year. Price per unit is $53, variable cost per unit is 25, and fixed costs are $900,000 per year. The tax rate is 22%, and we require a return of 10% on this project. a. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point? b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the quantity sold? Explain your answer through a 500 unit decrease in the quantity sold. C. What is the sensitivity of OCF to changes in the variable cost figure? Explain your answer through a $1 decrease in estimated variable costs