problem: Consider a two year project with the following data:
Initial fixed asset investment= $495,000;
A straight-line depreciation to zero over the 2 year life;
Salvage value= 0;
Selling price =$39;
Variable costs =$20;
Fixed costs =$210,000;
Quantity sold =150,000 units;
Tax rate =31%
How sensitive is Operating Cash Flow (OCF) to changes in the quantity sold? Give your answer in terms of dollar amount change [increase or decrease] in Operating Cash Flow for every additional unit sold.