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A Project Has a Contribution Margin of $5,projected Fixed Costs

Question 8

Multiple Choice

A project has a contribution margin of $5,projected fixed costs of $10,000,a projected variable cost per unit of $12,and a projected present value break-even point of 6,000 units. What is the operating cash flow at this level of output?


A) $2,000
B) $10,000
C) $20,000
D) $30,000
E) $120,000

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