Kite Flite Is Considering Making and Selling Custom Kites in Two

question 33

Multiple Choice

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

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Definitions:

Nonjudgmental Awareness

An approach or practice of being mindful and observant without making judgments or evaluations.

Sensation-Seeking

The desire to participate in highly arousing activities; it is especially common in early and mid-adolescence.

Highly Arousing Activities

Activities that intensely stimulate the emotional or physical state, causing heightened alertness or excitement.

Engagement-Seeking

The tendency to seek out interaction, stimulation, or involvement with others or one's environment as a means of fulfilling personal, social, or psychological needs.