Question
Claudius LTD is considering producing a line of kiddie swimming pools to complement their existing pool toy line. You are given the following information and
Claudius LTD is considering producing a line of kiddie swimming pools to complement their existing pool toy line. You are given the following information and you estimate the incremental cash flows (excluding sales, COGS, and depreciation) for the project to be closest to:
- Market focus group expense for research conducted last month: $25,000
- Current income from lease of warehouse space to be used for new assembly line: $120,000
- Annual maintenance contract on new assembly line equipment: $9,000
- Anticipated additional sales of pool toys: $150,000
| A. | $141,000. | |
| B. | $46,000. | |
| C. | $21,000. |
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
