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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