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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 $49 each with expected sales of 4,500 tops annually. By adding the fleece tops, management feels the firm will sell an additional 305 pairs of jeans at $61 a pair and 440 fewer T-shirts at $22 each. The variable cost per unit is $32 on the jeans, $12 on the T-shirts, and $27 on the fleece tops. With the new item, the depreciation expense is $29,000 a year and the fixed costs are $78,000 annually. The tax rate is 21 percent. What is the project's operating cash flow?

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