Solution-The depreciation expense is 36000 a year and the

The depreciation expense is 36000 a year and the fixed

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Reference no: EM13570158

The Stop Shoppe currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $29 each with expected sales of 6,000 tops annually. By adding the fleece tops, management feels the firm will sell an additional 975 pairs of jeans at $49 a pair and 400 fewer T-shirts at $12 each. The variable cost per unit is $28 on the jeans, $7 on the T-shirts, and $16 on the fleece tops. The depreciation expense is $36,000 a year and the fixed costs are $58,000 annually. The tax rate is 35 percent. What is the project's operating cash flow?

Reference no: EM13570158

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The depreciation expense is 36000 a year and the fixed

Reference no: EM13570158

Reference no: EM13570158

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