Chadron Apparel currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory. The tops would sell for $49 each with expected sales of 3,200 tops annually. By adding the fleece tops, management feels the company will sell an additional 150 pairs of jeans at $79 a pair and 220 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $7 on the T-shirts, and $21 on the fleece tops. The projects depreciation expense is $12,545.30 a year and the fixed costs are $21,000 annually. The tax rate is 34 percent. What is the project's operating cash flow?

• A. $47,935.80
• B. $52,201.20
• C. $38,419.70
• D. $43,209.90
• E. $55,755.80

Chadron Motors currently sells 13,800 motor homes per year at $87,900 each, and 1,100 luxury motor coaches per year at $139,900 each. The company wants to introduce a low-range camper to fill out its product line; it hopes to sell 7,200 of these campers per year at $17,500 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 1,100 units per year, and reduce the sales of its luxury motor coaches by 830 units per year. What amount should be used as the annual sales figure when evaluating this project?

• A. $137,351,000
• B. $128,787,000
• C. $97,480,000
• D. $128,309,000
• E. $106,573,000