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Burke ' s Corner currently sells blue jeans and T - shirts. Management is considering adding fleece tops to its inventory to provide a cooler

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 $47 each
with expected sales of 4,600 tops annually. By adding the fleece
tops, management feels the firm will sell an additional 315 pairs
of jeans at $59 a pair and 450 fewer T-shirts at $20 each. The
variable cost per unit is $30 on the jeans, $10 on the T-shirts,
and $25 on the fleece tops. With the new item, the depreciation
expense is $27,000 a year and the fixed costs are $79,000 annually.
The tax rate is 35 percent. What is the project's operating cash
flow?Multiple Choice$32,743$26,893$15,017$20,867$18,842

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