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A Project Has a Contribution Margin of $5, Projected Fixed

Question 235

Multiple Choice

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