A project has a contribution margin of $6, projected fixed costs of $15,000, a projected variable cost per unit of $10, and a projected present value break-even point of 4,000 units. What is the operating cash flow at this level of output?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Can you explain the process for solving this financial accounting question accurately?

A project has a contribution margin of $6, projected
fixed costs of $15,000, a projected variable cost per
unit of $10, and a projected present value break-even
point of 4,000 units.
What is the operating cash flow at this level of
output?
Transcribed Image Text:A project has a contribution margin of $6, projected fixed costs of $15,000, a projected variable cost per unit of $10, and a projected present value break-even point of 4,000 units. What is the operating cash flow at this level of output?
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