Reference no: EM132521263

Question - Wilson's Leather Goods currently sells short leather jackets for $199 each. They are considering selling long coats also. The coat would sell for $399 each and the company expects to sell 1,200 a year. If they carry the long coat, management feels that their sales of the short jacket will decline by 300 units. Variable costs on the jacket are $99 each and $270 each on the long coat. The incremental annual fixed costs related to the long coat are $80,000 and the incremental annual depreciation related to the long coat is $15,000. The tax rate is 34 percent. What is the projected operating cash flow for this project?