A Project Has a Contribution Margin of $4

question 54

Multiple Choice

A project has a contribution margin of $4.50,projected fixed costs of $12,500,projected variable cost per unit of $12,and a projected financial break-even point of 5,750 units.The depreciation expense is $6,200 and the tax rate is 34 percent.What is the operating cash flow at this level of output?

• A)$37,290.00
• B)$3,038.10
• C)$12,500.00
• D)$10,935.50
• E)$22,320.50

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Definitions:

Demanding

Requiring much time, attention, or effort; often refers to tasks, situations, or individuals that impose heavy obligations or exert pressure.

Responsive

The quality of reacting quickly and positively to stimuli or input from the environment.

Negligent

The failure to provide the necessary care, attention, or diligence that a reasonable person would under similar circumstances, often resulting in harm or damage.

Insecure

Feeling uncertain or lacking confidence in oneself, often resulting in anxiety or apprehension about one's achievements, relationships, or personal worth.