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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 $26 each with expected sales of 6,400 tops annually. By adding the fleece tops, management feels the firm will sell an additional 958 pairs of jeans at $15 a pair and 450 fewer T-shirts at $19 each. The variable cost per unit is $10 on the jeans, $12 on the T-shirts, and $16 on the fleece tops. The depreciation expense is $25,000 a year and the fixed costs are $43,000 annually. The tax rate is 38.4 percent. What is the project's operating cash flow?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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