Burke's Corner Currently Sells Blue Jeans and T-Shirts

Burke's Corner 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 $49 each with expected sales of 3,600 tops annually.By adding the fleece tops,management feels the firm will sell an additional 220 pairs of jeans at $59 a pair and 350 fewer T-shirts at $18 each.The variable cost per unit is $36 on the jeans,$9 on the T-shirts,and $21 on the fleece tops.With the new item,the depreciation expense is $27,000 a year and the fixed costs are $62,000 annually.The tax rate is 34 percent.What is the project's operating cash flow?

A) $27,789
B) $34,708
C) $36,049
D) $38,419
E) $40,201