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Goodheath Ltd. is evaluating a project to make health syrup bottles in two sizes. The small bottles will be priced at $12.20 and the large
Goodheath Ltd. is evaluating a project to make health syrup bottles in two sizes. The small bottles will be priced at $12.20 and the large bottles will be $25.20. The variable cost per unit is $5.90 and $12.80, respectively. The company estimates that it can sell 3,450 of the small bottles and 1,955 of the large bottles each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,750. The tax rate is 40 percent. Estimate the annual operating cash flow? Multiple Choice $27,014 O $26,314 $29,418 $28,286
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