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A 7 - year project is expected to generate annual sales of 1 0 , 2 0 0 units at a price of $ 8

A 7-year project is expected to generate annual sales of 10,200 units at a price of $89 per unit and a variable cost of $60 per unit. The equipment necessary for the project will cost $421,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $255,000 per year and the tax rate is 21 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?

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