Kites Galore is considering making and selling custom kites in two sizes. The small kites would be priced at $14 and the large kites would be $21. The variable cost per unit is $8 and $12, respectively. Tom, the owner, feels that he could sell 3,800 of the small kites and 2,400 of the large kites each year. The fixed costs would only be $4,000 a year and the tax rate is 35 percent. What is the annual operating cash flow if the annual depreciation expense is $2,700? $27,845 $26,260 $27,205 $29,245 $29,130

Kites Galore is considering making and selling custom kites in two sizes. The small kites would be priced at $14 and the large kites would be $21. The variable cost per unit is $8 and $12, respectively. Tom, the owner, feels that he could sell 3,800 of the small kites and 2,400 of the large kites each year. The fixed costs would only be $4,000 a year and the tax rate is 35 percent. What is the annual operating cash flow if the annual depreciation expense is $2,700? $27,845 $26,260 $27,205 $29,245 $29,130

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PB: Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and...

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