A project has a contribution margin of $13.27,projected fixed costs of $78,900,projected variable cost per unit of $9,and a projected financial breakeven point of 16,230 units.The depreciation expense is $36,200,and the tax rate is 35 percent.What is the operating cash flow at this level of output?

Question

Quizplus · Accepted Answer

Operating cash flow_{Financial Breakeven} = [(16,230 × $13.27)- $78,900](1 - 0.35)+ ($36,200 × 0.35)= $101,376.87

A Project Has a Contribution Margin of $13