Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $12.50 and the large kites would be $25.50. The variable cost per unit is $6.05 and $13.10, respectively. Jill, the owner, feels that she can sell 3,600 of the small kites and 2,000 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,900. The tax rate is 40 percent. What is the annual operating cash flow?
a. $28,300
b. $30755
c. $19.120
d. $27.540