Project B will result in unit sales of 2,000, at a price of $600 each. The variable cost (VC) of each unit is $300. The cost accountant will allocate overhead on the existing plant to Project B at a rate of $21 per unit. A special piece of equipment must be leased for $67,000 per year for purposes related solely to Project B. Project B will reduce sales of the same companys Project A by 650 units (selling price of $900 with VC of $480 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project B?

$197,200 $260,000 $262,250 $306,200 $327,000