Fredo's Fabulous Pies is considering an investment in a new outlet in Sydney and the accountants have assembled the following information:

initial fixed asset investment = $770 000

straight-line depreciation to zero over the three-year life

zero salvage value; selling price = $34.99 per pack

variable costs = $23.16 per pack

fixed costs = $245 000

quantity sold = 94 500 packs

tax rate = 35%

How sensitive is OCF to an increase of one pack in the quantity sold?

$7.69

$8.38

$8.67

$9.97