We are evaluating a project that costs $660,000, has a five-year life, and has no salvage value. Assume that the depreciation is straight-line to zero over the life of the project. Sales are projected at 69,000 units per year. Price per unit is $58, variable cost per unit is $38, and fixed costs are $660,000 per year. The tax rate is 35 percent, and we require a return of 12 percent on this project.

a. Calculate the accounting break even point= ____ units (round to nearest whole number)

b-2. What is the sensitivity of NPV to changes in the sales figure? Change NPV/ChangeQ ______

b-3. Calculate the change in NPV if sales were to drop by 500 units. NPV would decrease by $______

c. What is the sensitivity of OCF to changes in the variable cost figure? ChangeOCF/ChangeVC $______ .