Problem 11-5 Sensitivity Analysis and Break-Even (LO1, 3] We are evaluating a project that costs $735,200, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project . Sales are projected at 80,000 units per year. Price per unit is $48, variable cost per unit is $33, and fixed costs are $730,000 per year. The tax rate is 22 percent, and we require a return of 12 percent on this project. 2-1. Calculate the accounting break-even point. (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. What is the degree of operating leverage at the accounting break-even point? (Do not round Intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. Calculate the base-case cash flow and NPV. (Do not round Intermediate calculations. Round your cash flow answer to the nearest whole number, e.g., 32. Round your NPV answer to 2 decimal places, e.g., 32.16.) b-2.What is the sensitivity of NPV to changes in the quantity sold? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-1. units Break-even point DOL |a-2. b-1. Cash flow NPV b-2. ANPVIAQ AOCF/AVC c