Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $50 each with expected sales of 3,650 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $60 a pair and 355 fewer T-shirts at $21 each. The variable cost per unit is $28 on the jeans, $12 on the T-shirts, and $24 on the fleece tops. With the new item, the depreciation expense is $30,000 a year and the fixed costs are $65,000 annually. The tax rate is 21 percent. What is the project's operating cash flow? Multiple Choice O O O O $27,396 $36,689 $32,959 $23,179
Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $50 each with expected sales of 3,650 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $60 a pair and 355 fewer T-shirts at $21 each. The variable cost per unit is $28 on the jeans, $12 on the T-shirts, and $24 on the fleece tops. With the new item, the depreciation expense is $30,000 a year and the fixed costs are $65,000 annually. The tax rate is 21 percent. What is the project's operating cash flow? Multiple Choice O O O O $27,396 $36,689 $32,959 $23,179
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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