Question: Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $11.00 and the large
Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $11.00 and the large kites would be $24.00. The variable cost per unit is $5.30 and $11.60, respectively. Jill, the owner, feels that she can sell 2,850 of the small kites and 1,775 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,150. The tax rate is 21 percent. What is the annual operating cash flow?
Multiple Choice
$23,413
$21,681
$14,914
$24,350
$28,788
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