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Cramster can you help me with this question please? Thank youvery much. Wilson's Leather Goods currently sells short leather jacketsfor $199 each. They are considering
Cramster can you help me with this question please? Thank youvery much.
Wilson's Leather Goods currently sells short leather jacketsfor $199 each. They are considering selling long coats also. Thecoat would sell for $399 each and the company expects to sell 1,200a year. If they carry the long coat, management feels that theirsales of the short jacket will decline by 300 units. Variable costson the jacket are $99 each and $270 each on the long coat. Theincremental annual fixed costs related to the long coat are $80,000and the incremental annual depreciation related to the long coat is$15,000. The tax rate is 34 percent. What is the projectedoperating cash flow for this project?
a. $49,568
b. $34, 688
c. $37, 768
d. $29,568
e. $54,468
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