A Project Has a Contribution Margin of $3

question 405

Multiple Choice

A project has a contribution margin of $3.20, projected fixed costs of $9,400, projected variable costs per unit of $7.25, and a projected financial break-even point of 6,100 units. What is the operating cash flow at this level of output?

• A) $10,120
• B) $10,487
• C) $10,504
• D) $10,523
• E) $10,698

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