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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. The tops

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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. The tops would sell for $50 each with expected sales of 3,650 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $60 a pair and 355 fewer T-shirts at $21 each. The variable cost per unit is $28 on the jeans, $12 on the T-shirts, and $24 on the fleece tops. With the new item, the depreciation expense is $30,000 a year and the fixed costs are $65,000 annually. The tax rate is 34 percent. What is the project's operating cash flow? Multiple Choice $32,472 $21,673 $27,396 $23,179 $36,689

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