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MC algo 11-4 OCF Sensitivity Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5,400 pairs of sunglasses

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MC algo 11-4 OCF Sensitivity Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5,400 pairs of sunglasses at a price of $99 each and a variable cost of $101 each. The equipment necessary for the project will cost $285.000 and will be depreciated on a straight line basis over the 5 year life of the project. Fixed costs are $150,000 per year and the tax rate is 35 percent How sensitive is the operating cash flow to a St increase in variable costs per pairs of sunglasses? Multiple Choice $3,510 $3,159 -$3.159 $3,510 -$3,900

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