Burke's Corner currently sells blue jeans and T - shirts. Management is considering adding fleece tops to
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Question:
Burke's Corner currently sells blue jeans and Tshirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $ each with expected sales of tops annually. By adding the fleece tops, management feels the firm will sell an additional pairs of jeans at $ a pair and fewer Tshirts at $ each. The variable cost per unit is $ on the jeans, $ on the Tshirts, and $ on the fleece tops. With the new item, the depreciation expense is $ a year and the fixed costs are $ annually. The tax rate is percent. What is the project's operating cash flow?
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