Business, 04.07.2020 18:01 blkrosesss

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 $45 each with expected sales of 4,700 tops annually. By adding the fleece tops, management feels the firm will sell an additional 325 pairs of jeans at $57 a pair and 460 fewer T-shirts at $18 each. The variable cost per unit is $28 on the jeans, $10 on the T-shirts, and $23 on the fleece tops. With the new item, the depreciation expense is $25,000 a year and the fixed costs are $80,000 annually. The tax rate is 35 percent. What is the project's operating cash flow

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

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