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Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 7,200 pairs of sunglasses at a price of 5167

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Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 7,200 pairs of sunglasses at a price of 5167 each and a variable cost of $119 each. The equipment necessary for the project will cost $375,000 and will be depreciated on a straight line basis over the 7-year life of the project. Fixed costs are $330,000 per year and the tax rate is 21 percent. How sensitive is the operating cash flow to a Si increase in variable costs per pairs of sunglasses? Multiple Choice

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