Problem $7-1$ Sensitivity Analysis and Break$-$Even Point

We are evaluating a project that costs $$768,000,$ has a life of$6$ years, and has no salvage value. Assume that depreciation is straight$-$line to zero over the life of the project. Sales are projected at $44,000$ units per year. Price per unit is $$60,$ variable cost per unit is $$35,$ and fixed costs are $$770,000$ per year. The tax rate is $25$ percent, and we require a return of $13$ percent on this project.

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a$.$

Calculate the accounting break$-$even point. $($Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,32.)$

b$-1.$Calculate the base$-$case cash flow and NPV$.($Do not round intermediate calculations and round your NPV answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$b$-2.$What is the sensitivity of NPV to changes in the sales figure? $($Do not round intermediate calculations and round your answer to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$c$.$What is the sensitivity of OCF to changes in the variable cost figure?