Consider a three$-$year project with the following information: initial fixed asset investment $=$$$698,000$; straight$-$line

depreciation to zero over the four$-$year life; zero salvage value; price $=$$$34\mathrm{.}15$; variable costs $=$$$22\mathrm{.}60$; fixed costs

$=$$$210,500$; quantity sold $=96,500$ units; tax rate $=40$ percent.

Required:

What is the OCF at the base$-$case quantity sold?

What is the OCF at $97,500$ units sold?

How sensitive is OCF to changes in quantity sold?