Silverstone Enterprises has the following projected financials for a new product: Contribution Margin per unit: $8 Projected Fixed Costs: $16,000 Projected Variable Cost per unit: $10 Projected Present Value Break-even Point: 4,000 units. What is the operating cash flow at the break-even level of output? a. $2,000 b. $16,000 c. $18,000 d. $32,000 e. $24,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 4P
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Silverstone Enterprises has the following projected
financials for a new product: Contribution Margin per unit:
$8 Projected Fixed Costs: $16,000 Projected Variable Cost
per unit: $10 Projected Present Value Break-even Point:
4,000 units.
What is the operating cash flow at the break-even level of
output?
a. $2,000
b. $16,000
c. $18,000
d. $32,000
e. $24,000
Transcribed Image Text:Silverstone Enterprises has the following projected financials for a new product: Contribution Margin per unit: $8 Projected Fixed Costs: $16,000 Projected Variable Cost per unit: $10 Projected Present Value Break-even Point: 4,000 units. What is the operating cash flow at the break-even level of output? a. $2,000 b. $16,000 c. $18,000 d. $32,000 e. $24,000
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