A Proposed Project Has a Contribution Margin Per Unit of $13.10,fixed

question 6

Multiple Choice

A proposed project has a contribution margin per unit of $13.10,fixed costs of $74,000,depreciation of $12,500,variable costs per unit of $22,and a financial break-even point of 11,360 units.What is the operating cash flow at this level of output?

• A)$0
• B)$12,500
• C)$62,309
• D)$74,816
• E)$86,500

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Definitions:

Convergent Thinking

Narrowing the available problem solutions to determine the single best solution.

Academic Aptitude

The natural ability or skill to learn and understand academic subjects.

Venturesome Personality

A personality trait characterized by a willingness to take risks and try new experiences.

Mechanical Engineer

A professional who designs, analyses, and manufactures mechanical systems, utilizing principles of physics and materials science.