Question: please make sure calculated answer is an answer choice Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell

please make sure calculated answer is an answer choice
please make sure calculated answer is an answer choice Sun Brite has

Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 7000 pairs of sunglasses at a price of $165 each and a variable cost of $117 each. The equipment necessary for the project will cost $365,000 and will be depreciated on a straight-line basis over the 5-year life of the project. Fixed costs are $310,000 per year and the tax rate is 40 percent. How sensitive is the operating cash flow to a $1 change in variable costs per pairs of sunglasses? $4200 -$4667 0-$4200 $3780 -$3780

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