A Project Has a Contribution Margin of $5,projected Fixed Costs

question 88

Multiple Choice

A project has a contribution margin of $5,projected fixed costs of $12,000,a projected variable cost per unit of $12,and a projected present value 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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