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A company that sells items by catalog analyzes the project to sell scooters. The studies carried out project sales of scooters for $ 20,000,000 annually.

A company that sells items by catalog analyzes the project to sell scooters. The studies carried out project sales of scooters for $ 20,000,000 annually. However, scooters will affect bicycle sales by reducing them by $ 1,900,000. The out-of-pocket costs for the scooters would be 60% of the sale price and the investment in a warehouse would generate additional depreciation of $ 3,000,000. The scooters will be managed through the existing catalog order system and will continue to have the same annual cost of $ 600,000. If the tax rate is 30%. The annual marginal operating flow will be:
$ 5,170,000
OR $ 4,750,000
OR $ 6,500,000
OR $ 7,970,000
OR Other:

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