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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Preview:
...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.