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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 weather option.

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 $57 each with expected sales of 4,000 tops annually. By adding the fleece tops, management feels the firm will sell an additional 255 pairs of jeans at $67 a pair and 390 fewer T-shirts at $28 each. The variable cost per unit is $35 on the jeans, $19 on the T-shirts, and $31 on the fleece tops. With the new item, the depreciation expense is $37,000 a year and the fixed costs are $72,000 annually. The tax rate is 21 percent. What is the project's operating cash flow?
Multiple Choice
$23,831
$36,724
$42,269
$15,467
$29,377
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