We are evaluating a project that costs $933,000, has a twelve-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 87,000 units per year. Price per unit is $44, variable cost per unit is $23, and fixed costs are $948,861 per year. The tax rate is 33 percent, and we require a 14 percent return on this project.

a. The accounting break-even point is ____ units. (Round your answer to the nearest whole number. (e.g., 32)) The degree of operating leverage at the accounting break-even point is _____. (Round your answer to 3 decimal places. (e.g., 32.161))

b. The base-case cash flow is $ ____and NPV is $____ . (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)) The sensitivity of NPV to changes in the sales figure is $ ____. (Do not include the dollar sign ($). Round your answer to 3 decimal places. (e.g., 32.161)) If there is a 500-unit decrease in projected sales, we would expect the NPV to change by $____ . (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) c. The sensitivity of OCF to changes in the variable cost figure is $ _____. Therefore, a $1 decrease in estimated variable costs results in a $______ change in OCF. (Do not include the dollar signs ($). Negative amount should be indicated by a minus sign. Round your answers to the nearest whole number. (e.g., 32))