Question
Wilson's leather goods currently sells short leather jackets for $250 each. They are considering selling long coats also. The coat would sell for $425 each
Wilson's leather goods currently sells short leather jackets for $250 each. They are considering selling long coats also. The coat would sell for $425 each and the company expects to sell 1600 a year. If they carry the long coat, management feels that there sales of the short jacket will decline by 350 units variable cost of jackets are $99 each and $270 each on the long coat. The incremental annual annual fixed cost related to the long coat are $90000 and first year depreciation related to long coat is $ 12000. The tax rate is 34%. what is the projected operating cash flow for year one of this project?
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