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Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 6,500 pairs of sunglasses at a price of $160

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Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 6,500 pairs of sunglasses at a price of $160 each and a variable cost of $112 each. The equipment necessary for the project will cost $340,000 and will be depreciated on a straight-line basis over the 9 -year life of the project. Fixed costs are $260,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 increase in varlable costs per pairs of sunglasses? Multiple Choice $3,861 $3,861 $4,290 $4,767

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