We are evaluating the project that cost 733000 has a life of 8 years and has no salvage value. Assume that depreciation is straight line to zero over the life of the project. Sales are projected at 140000 units per year. Price per unit is $ 36, variable cost per unit is $ 26 and fix cost is 738131 per year. Tax rate is 25%. We require a return of 16 % of this project. What is the sensitivity to changes in the quantity sold? What your answer tells you about if the 500 units decreased in quantity sold?

Please explain using equations or finance calculator in details. Thanks!