Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 13 - Capital Budgeting Decisions - The Foundational 15 - Required - Page 608: 2

Answer

Annual net cash inflow $1068000$

Work Step by Step

Take contribution margin minus advertising, salaries, and other fixed out of pocket costs to get the annual net cash inflow. Simply remove depreciation from the income statement and recalculate.
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