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Lucid co ats a new pair of somplasser its is evaluting. The company expect to sell 5000 paits of songlass at a price of $165

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Lucid co ats a new pair of somplasser its is evaluting. The company expect to sell 5000 paits of songlass at a price of $165 each and a variabe cost of 117 each The equipment necessary for the project will last 365000 and coill be depreciated on a straight-ine basis over the 5 year life of the project. Fixed costs are $310,000 per year and the tax rate is 21 percent. How sensitive is the operativy cash frow to a $1 increase in variabie cost per pair of songlasses? (1) operating cashfiow drops by $3950 (1) operatiry cash f100 increase by $4200 III) operativy cashfrow increase by 3780 opprating cash flow drops by 4667 operating casn flow drops by 5530

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