Project B will result in unit sales of 1,500, at a price of $500 each. The variable cost (VC) of each unit is $250. The cost accountant will allocate overhead on the existing plant to Project B at a rate of $21 per unit. A special piece of equipment must be leased for $50,000 per year for purposes related solely to Project B. Project B will reduce sales of the same company’s Project A by 150 units (selling price of $800 with variable cost of $420 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project B?
$231,700
$268,000
$281,700
$313,200
$318,000