QUESTION

68. Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventor

Category: Business
Subject: Finance
Due Date: 02/02/2016
Question Asked: 2016-02-03 02:57:06

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68. 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 $49 each with expected sales of 3,600 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $59 a pair and 350 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $9 on the T-shirts, and $21 on the fleece tops. With the new item, the depreciation expense is $27,000 a year and the fixed costs are $62,000 annually. The tax rate is 34 percent. What is the project's operating cash flow? 
A. $27,789
B. $34,708
C. $36,049
D. $38,419
E. $40,201


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68. Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventor

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Posted on 2016-02-03 02:57:06

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...per unit is $36 on the jeans, $9 on the T-shirts, and $21 on the fleece tops. With the new item, the depreciation expense is $27,000 a year and...

The full tutorial is about 116 words long.