The Outpost Currently Sells Short Leather Jackets for $349 Each

The Outpost currently sells short leather jackets for $349 each.The firm is considering selling long coats also.The coats would sell for $689 each and the company expects to sell 900 a year.If the firm decides to carry the long coat,management feels that the sales of the short jacket will decline from 1,420 to 1,265 units.Variable costs on the jacket are $210 and $445 on the long coat.The fixed costs for this project are $42,000,depreciation is $11,000 a year,and the tax rate is 33 percent.What is the projected operating cash flow for this project?

A) $108,187
B) $111,264
C) $112,212
D) $119,672
E) $120,418