Answer:
Operating cash flow= $31,413.06
Step-by-step explanation:
Giving the following information:
Small kites:
Selling price= $12.6
Unitary variable cost= $6.10
Sales= 3,650 units
Large kites:
Selling price= $25.6
Unitary variable cost= $13.2
Sales= 2,015 units
The fixed costs would be $2,120 a year and the depreciation expense is $1,950. The tax rate is 34 percent.
Sales= (3,650*12.6 + 2,015*25.6)= 97,574
Variable cost= (3,650*6.1 + 2,015*13.2)= (48,863)
Contribution margin= 48,711
Fixed costs= (2,120)
Depreciation= (1,950)
EBIT= 44,641
Tax= (44,641*0.34)= (15,177.94)
Depreciation= 1,950
Operating cash flow= $31,413.06