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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 $54 each with expected sales of 3,850 tops annually. By adding the fleece tops, management feels the firm will sell an additional 240 pairs of jeans at $64 a pair and 375 fewer T-shirts at $25 each. The variable cost per unit is $32 on the jeans, $16 on the T-shirts, and $28 on the fleece tops. With the new item, the depreciation expense is $34,000 a year and the fixed costs are $69,000 annually. The tax rate is 35 percent. What is the project's operating cash flow? Multiple Choice $39,301 O $34.913 o o

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