Initial fixed asset investment-variable costs-quantity sold

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Reference no: EM13917508

Consider a three-year project with the following information: initial fixed asset investment = $860,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $33.65; variable costs = $22.35; fixed costs = $208,000; quantity sold = 94,000 units; tax rate = 34 percent.

Required:

How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13917508

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