A 6-year project is expected to generate annual sales of 9,700 units at a price of $84 per unit and a variable cost of $55 per unit. The equipment necessary for the project will cost $381,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $230,000 per year and the tax rate is 23 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price? $5,201 $6,722 $5,962 $5,582 $7.469 Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $52 each with expected sales of 4,350 tops annually. By adding the fleece tops, management feels the firm will sell an additional 290 pairs of jeans at $64 a pair and 425 fewer T-shirts at $25 each. The variable cost per unit is $35 on the jeans, $15 on the T-shirts, and $30 on the fleece tops. With the new item, the depreciation expense is $32,000 a year and the fixed costs are $76,500 annually. The tax rate is 23 percent. What is the project's operating cash flow? $25,347 $12,733 $12,396 $31,892 $18,941