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 23 percent. How sensitive is the operating cash flow to a $1 increase in variable costs per pairs of sunglasses? Multiple Choice $4,004 $3,604 $3,604 $4,004 $4,449