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Musya8 [376]
3 years ago
5

The Outpost, a sole proprietorship currently sells short leather jackets for $369 each. The firm is considering selling long coa

ts also. The long coats would sell for $719 each and the company expects to sell 820 a year. If the company decides to carry the long coat, management feels that the annual sales of the short jacket will decline from 1,120 to 1,040 units. Variable costs on the jacket are $228 and $435 on the long coat. The fixed costs for this project are $23,100, depreciation is $10,400 a year, and the tax rate is 34 percent. What is the projected operating cash flow for this project
Business
1 answer:
Cloud [144]3 years ago
3 0

Answer:

$134,546

Explanation:

Calculation to determine the projected operating cash flow for this project

Projected operating cash flow=

{[820 × ($719 − 435)] + [(1,040 − 1,120) × ($369 − 228)] − $23,100} × {1 − .34} + {$10,400 × .34}

Projected operating cash flow={[820 × $284)] + [$80 × $141] − $23,100} × {.66} + {$3,436}

Projected operating cash flow= $134,546

Therefore the projected operating cash flow for this project is $134,546

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Answer:

B. The denial is justifiable given the level of interbrand competition.

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This condition<em> can't be found</em> in the scenario above.

The denial that done by PepsiCo is justifiable because in a really competitive market, a company need to impose a strict requirement on which entities they should form a dealership relation with. If PepsiCo choose the wrong dealers, Its competitors could easily taken over the market and resulted in a huge amount of loss for the company.

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3 years ago
Suppose the economy is currently in long-run equilibrium. The government has just decided to lower income taxes. The long-run im
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But in the long-run economic growth will be slowed down by tax cuts because it will increase deficits by lesser funds being generated for the government over time

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2 years ago
On January 15, Cheyenne Corp. sells merchandise on account to Flounder Associates for $4500 with terms 2/10, n/30. On January 20
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