Question: Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $10.50 and the large
Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $10.50 and the large kites would be $23.50. The variable cost per unit is $5.05 and $11.10, respectively. Jill, the owner, feels that she can sell 2,600 of the small kites and 1,700 of the large kites each year. The fixed costs would be $2,100 a year and the depreciation expense is $900. The tax rate is 34 percent. What is the annual operating cash flow?
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