A Project Has a Contribution Margin of $5, Projected Fixed

question 235

Multiple Choice

A project has a contribution margin of $5, projected fixed costs of $12,000, projected variable cost per unit of $12, and a projected financial break-even point of 5,000 units. What is the operating cash flow at this level of output?

• A) $1,000
• B) $12,000
• C) $13,000
• D) $68,000
• E) $73,000

---

Definitions:

Mental Shortcuts

Cognitive strategies or heuristics that simplify decision making by using limited information, allowing for faster judgements but sometimes at the cost of accuracy.

Self-Serving Bias

A cognitive bias that involves individuals attributing their successes to internal factors while attributing failures to external factors.

Information Presentation

The method or format in which information is organized and provided to an audience or users.

Disconfirmatory Information

Information or evidence that contradicts or refutes one's beliefs or assumptions.