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

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Definitions:

Short-Term Scheduling

The process of organizing, managing, and allocating resources and tasks over a short time period to achieve specific objectives.

Air Canada

The largest airline of Canada, providing scheduled and charter air transport for passengers and cargo.

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Assets, materials, and other supplies available to an individual or organization for achieving specific goals.

Time

A continuous sequence of events or the measurement thereof, which is a fundamental concept in physics, perception, and many aspects of human life.