Wilson\'s Leather Goods currently sells short leather jackets for$199 each. They

Question

Wilson's Leather Goods currently sells short leather jackets for$199 each. They are considering selling long coats also. The coatwould sell for $399 each and the company expects to sell 1,200 ayear. If they carry the long coat, management feels that theirsales of the short jacket will decline by 300 units. Variable costson the jacket are $99 each and $270 each on the long coat. Theincremental annual fixed costs related to the long coat are $80,000and the incremental annual depreciation related to the long coat is$15,000. The tax rate is 34 percent. What is the projectedoperating cash flow for this project?
a. $49,568 b. $34,668 c. $37,768 d. $29,568 e. $54,468

Would the answer be- 478,000 -324,000 -80,000 -15,000 59,808 * .34 -20,332 (taxes) $39,468 THEN ADD $15,000 to get$54,468
Can someone confirm that thisanswer is $54,468? Thank you very much Cramster!

a. $49,568 b. $34,668 c. $37,768 d. $29,568 e. $54,468

Would the answer be- 478,000 -324,000 -80,000 -15,000 59,808 * .34 -20,332 (taxes) $39,468 THEN ADD $15,000 to get$54,468
Can someone confirm that thisanswer is $54,468? Thank you very much Cramster!

Explanation / Answer

Can someone please help me with this question? Thank you very much!

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.