Project Z will result in unit sales of 1,750, at a price of $550 each. The variable cost (VC) of each unit is $275. The cost accountant will allocate overhead on the existing plant to Project Z at a rate of $21 per unit. A special piece of equipment must be leased for $59,000 per year for purposes related solely to Project Z. Project Z will reduce sales of the same companys Project X by 400 units (selling price of $850 with VC of $450 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project Z?

$212,700 $262,250 $268,000 $308,450 $321,250