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Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5,100 pairs of sunglasses at a price of $146

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Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5,100 pairs of sunglasses at a price of $146 each and a variable cost of $98 each. The equipment necessary for the project will cost $270,000 and will be depreciated on a straight-line basis over the 6-year life of the project Fixed costs are $120,000 per year and the tax rate is 35 percent. How sensitive is the operating cash flow to a S1 increase in variable costs per pairs of sunglasses? Multiple Choice $3.583 52.984

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