Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell $5,200$ pairs of sunglasses at a price of $$147$ each and a variable cost of $$99$ each.

The equipment necessary for the project will cost $$275,000$ and will be depreciated on a straight$-$line basis over the $7-$year life of the project. Fixed costs are

$$130,000$ per year and the tax rate is $21$ percent. How sensitive is the operating cash flow to a $$1$ increase in variable costs per pairs of sunglasses?

Multiple Choice

$-$$$2,808$

$-$$$3,467$

$$3,120$

$-$$$4,108$

$$2,808$