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25. 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

25. 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 $58 each with expected sales of 4,050 tops annually. By adding the fleece tops, management feels the firm will sell an additional 260 pairs of jeans at $68 a pair and 395 fewer T-shirts at $29 each. The variable cost per unit is $36 on the jeans, $20 on the T-shirts, and $32 on the fleece tops. With the new item, the depreciation expense is $38,000 a year and the fixed costs are $73,000 annually. The tax rate is 22 percent. What is the project's operating cash flow?

$29,837

$24,292

$37,271

$16,514

$42,817

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