What is total incremental cash flow for project

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Project B will result in unit sales of 1,500, at a price of $500 each. The variable cost (VC) of each unit is $250. The cost accountant will allocate overhead on the existing plant to Project B at a rate of $21 per unit. A special piece of equipment must be leased for $50,000 per year for purposes related solely to Project B. Project B will reduce sales of the same company’s Project A by 150 units (selling price of $800 with variable cost of $420 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project B?

$231,700

$268,000

$281,700

$313,200

$318,000

Reference no: EM131552266

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