A Project Has a Contribution Margin of $6, Projected Fixed

question 52

Multiple Choice

A project has a contribution margin of $6, projected fixed costs of $14,000, projected variable cost per unit of $14, and a projected financial break-even point of 6,000 units. What is the operating cash flow at this level of output?

• A) $22,000
• B) $34,000
• C) $46,000
• D) $62,000
• E) $70,000

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Definitions:

Auditor's Opinion

A formal statement by an auditor, after reviewing an organization's financial statements, regarding the fairness and accuracy of those statements.

LLP

A limited liability partnership, a business structure that offers its owners protection from personal liability for debts or legal actions against the business.

Limited Liability Partnerships

A business structure where partners have limited liabilities, protecting each partner's personal assets from the debts and liabilities of the partnership.

Professional Malpractice

Failure by a professional person to provide services with the competent and skillful level of care that is required in their profession, leading to harm or loss.