Kites galore is considering making and selling custom kites, Ask an Expert

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Kites Galore is considering making and selling custom kites in two sizes. The small kites would be priced at $15 and the large kites would be $23. The variable cost per unit is $8 and $13, respectively. Tom, the owner, feels that he could sell 3,500 of the small kites and 2,400 of the large kites each year. The fixed costs would only be $4,300 a year and the tax rate is 34.6 percent. What is the annual operating cash flow if the annual depreciation expense is $2,600?

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Category:- Basic Finance
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