Hi-As-A-Kite is considering making and selling custom kites in two sizes.The small kites would be priced at $10 and the large kites would be $24.The variable cost per unit is $5 and $11,respectively.Jill,the owner,feels that she can sell 2,600 of the small kites and 1,700 of the large kites each year.The fixed costs would be only $2,100 a year and the tax rate is 34 percent.What is the annual operating cash flow if the annual depreciation expense is $900?
A) $20,064
B) $22,086
C) $22,848
D) $23,309
E) $23,604
Correct Answer:
Verified
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