How sensitive is OCF to changes in quantity sold

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Consider a three-year project with the following information: initial fixed asset investment = $674,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $32.95; variable costs = $22.00; fixed costs = $204,500; quantity sold = 90,500 units; tax rate = 40 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).)

ΔOCF/ΔQ_________________________ $

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Reference no: EM13917367

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