Kite Flite Is Considering Making and Selling Custom Kites in Two

Kite Flite is considering making and selling custom kites in two sizes.The small kites would be priced at $12 and the large kites would be $39.The variable cost per unit is $5 and $14, respectively.Jill, the owner, feels that she can sell 1,900 of the small kites and 1,400 of the large kites each year.The fixed costs would be only $1,890 a year and the tax rate is 34 percent.What is the annual operating cash flow if the annual depreciation expense is $380?

A) $26,064.12
B) $30,759.80
C) $29,848.20
D) $28,309.40
E) $30,630.60

Correct Answer:

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