Give correct solution A project has a contribution margin of $5, projectedfixed costs of $12,000, a projected variable cost perunit of $12, and a projected present value break-evenpoint 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.

Step 1: Introduction to the OutputOutput refers to the inventory or units produced or sold by the…

Answered: A project has a contribution margin of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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