Florida Atlantic University Operations And Supply Chain Management Assignment Help - Sensitivity Analysis
Question - Problem 9-22 Sensitivity Analysis [LO 3]
Consider a three-year project with the following information: initial fixed asset investment = $698,000;
straight-line depreciation to zero over the four-year life; zero salvage value; price = $34.15; variable
costs = $22.60; fixed costs = $210,500; quantity sold = 96,500 units; tax rate = 40 percent.
How sensitive is OCF to changes in quantity sold? (Do not include the dollar sign ($). Round your
answer to 2 decimal places (e.g., 32.16).)
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