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Mahogany Corporation has a new line of guitars that will generate sales of $380,000 per year. The variable cost rate for guitars amount to 35%
Mahogany Corporation has a new line of guitars that will generate sales of $380,000 per year. The variable cost rate for guitars amount to 35% of revenue while fixed costs are $100,000 per year. The Capital Investment for the factory was $800,000 with a depreciable life (straight-line) of 15 years. If the Tax Rate is 22%, what is the Operating Cash Flow (rounded to the nearest dollar)? Multiple Choice $126,393 $142,333 None of the above O $81,063 O $167,867
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