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:

Mechanistic Structure

An organizational configuration that emphasizes hierarchy, rigid departmentalization, a clear chain of command, and strict control, commonly found in highly formalized and centralized organizations.

Organic Structure

An organizational configuration characterized by flexibility, decentralized decision-making, and a lack of rigid procedures.

Innovative Ideas

Novel concepts or proposals that have the potential to bring about significant changes or improvements in a specific field.

Process Innovation

The introduction of new or significantly improved methods in the production or delivery of goods and services.