Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory
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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 4,450 tops annually. By adding the fleece tops, management feels the firm will sell an additional 300 pairs of jeans at $62 a pair and 435 fewer T-shirts at $23 each. The variable cost per unit is $33 on the jeans, $13 on the T-shirts, and $28 on the fleece tops. With the new item, the depreciation expense is $30,000 a year and the fixed costs are $77,500 annually. The tax rate is 35 percent. What is the project's operating cash flow?
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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