A proposed project has a contribution margin per unit of $13.10,fixed costs of $74,000,depreciation of $12,500,variable costs per unit of $22,and a financial break-even point of 11,360 units.What is the operating cash flow at this level of output?
A)$0
B)$12,500
C)$62,309
D)$74,816
E)$86,500

Question

Quizplus · Accepted Answer

OCF_{financial break-even} = (11,360 × $13.10) - $74,000 = $74,816

A Proposed Project Has a Contribution Margin Per Unit of $13.10,fixed