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Company incremental operating cash flow

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Reference no: EM131066522

Company Y is trying to add a new line of production that would produce 3000 jars of fruits a year, and generate $3.5 in revenue for each jar sold. The gross margin is estimated to be 23%. Also, Company Y will have to pay 3% commissions to sales team to promote and sell the product. Given that depreciation expense equals $2000, and its tax rate is 36%, what is the company' s incremental operating cash flow?

Reference no: EM131066522

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