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?
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?
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 10P
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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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