From his luxury food truck, Chef Timon Balloo plans to sell small Poke bowls for $11.60 and large Poke bowls for $24.60. The variable cost per unit is $5.60 for the small Poke bowls and $12.20 for the large bowls. Chef Balloo envisions annual sales of 3,150 small bowls and 1,865 large Poke bowls. What is the annual operating cash flow if annual fixed costs will be $2,120 and the depreciation expense $1,450? Note: Timon Balloo’s tax rate is 40%.
a. $24,524
b. $25,796
c. $16,542
d. $23,944
e. $26,827
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