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

question 254

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:

Utility Function

A mathematical representation that ranks alternatives according to their utility to an individual, reflecting their preferences or satisfaction from consuming goods or services.

Coin-Flip Bet

A simple gambling wager based on the outcome of a flipped coin, presenting an equal chance of winning or losing based on its landing face.

Wealth

The total value of all financial assets and physical possessions owned by an individual or entity, minus any liabilities.

Standard Deviation

A statistical measure of the dispersion or variability in a set of data, indicating how much individual data points diverge from the mean value.