Riverside Tech has a product with the following details: Contribution margin per unit: $8 • • Projected fixed costs: $20,000 Projected variable cost per unit: $10 • • Projected present value break-even point: 6,000 units What is the operating cash flow at this level of output?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...
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I am searching for the accurate solution to this financial accounting problem with the right approach.

Riverside Tech has a product with the following details:
Contribution margin per unit: $8
•
•
Projected fixed costs: $20,000
Projected variable cost per unit: $10
•
•
Projected present value break-even point: 6,000 units
What is the operating cash flow at this level of output?
Transcribed Image Text:Riverside Tech has a product with the following details: Contribution margin per unit: $8 • • Projected fixed costs: $20,000 Projected variable cost per unit: $10 • • Projected present value break-even point: 6,000 units What is the operating cash flow at this level of output?
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