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The Stop Shoppe currently sells blue jeans and T-shirts.

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Operating Cash Flow 1 answer below » 8. 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. View complete question » 8. 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? View less » Jan 10 2014 09:11 PM


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