Question: Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $12.90 and the large
Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $12.90 and the large kites would be $25.90. The variable cost per unit is $6.25 and $13.50, respectively. Jill, the owner, feels that she can sell 3,800 of the small kites and 2,060 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $2,100. The tax rate is 21 percent. What is the annual operating cash flow?
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