Gerry's Gemstones Ltd. is considering carrying a new product line which is expected to produce annual sales of $550,000 and increase cash expenses by $375,001. If the product line is added, taxes will increase by $42,000. The additional depreciation expense will be $48,000. An initial cash outlay of $75,000 is required for net working capital. What is the amount of the operating cash flow using the top-down approach? $225,000$214,000$153,000$133,000$93,000 Murray's Motorhomes currently sells 4,750 Deluxe motor homes, 3,000 Executive motor homes, and 2,000 Ritz motor homes each year. Murray's management is considering adding a mid-class camper and expects that if they do, they can sell 2,500 of them. However, if the new camper model is added, Murray's management expects that the Deluxe motor homes sales will decline to 4,200 units while the Executive motor homes sales decline to 2,200 units. The sales of the Ritz deluxe model will not be affected. Deluxe motor homes sell for an average of $45,000 each. Executive motor homes are priced at $65,000 and the Ritz deluxe model sells for $75,000 each. The new mid-class camper will sell for $35,000. What is the erosion cost to the Deluxe and Executive model sales from the introduction of the mid-class camper? $42.64 million $123.23 million $76.75 million $83.32 million $104.58 million