A Project Has a Contribution Margin of $13

question 58

Multiple Choice

A project has a contribution margin of $13.27,projected fixed costs of $78,900,projected variable cost per unit of $9,and a projected financial breakeven point of 16,230 units.The depreciation expense is $36,200,and the tax rate is 35 percent.What is the operating cash flow at this level of output?

• A)$65,176.87
• B)$103,038.10
• C)$112,500.00
• D)$101,376.87
• E)$122,320.50

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