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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

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 $ 56 each with expected sales of 3,950 tops annually By adding the fleece tops , management feels the firm will sell an additional 250 pairs of jeans at $ 66 a pair and 385 fewer T - shirts at $ 27 each . The variable cost per unit is $ 34 on the jeans , $ 18 on the T - shirts , and $ 30 on the fleece tops . With the new item , the depreciation expense is $ 36,000 a year and the fixed costs are $ 71,000 annually . The tax rate is 21 percent . What is the project's operating cash flow ?

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