Regular production costs $15 per unit and selling a unit represents a cash inflow of $25 per unit.Assume that all units reflected on the forecast will be sold.What is the net cash flow for March?
A) $11,500
B) $7,500
C) $4,500
D) $3,000

Question

Regular production costs $15 per unit and selling a unit represents a cash inflow of $25 per unit.Assume that all units reflected on the forecast will be sold.What is the net cash flow for March? 
A) $11,500 
B) $7,500 
C) $4,500 
D) $3,000

Quizplus · Accepted Answer

Net cash flow per unit = $25 - $15 = $10
Assuming all units reflected on the forecast will be sold, the net cash flow for March will be:
Net cash flow for March = Net cash flow per unit x Number of units
= $10 x 300
= $3,000
Therefore, the answer is D) $3,000.

Regular Production Costs $15 Per Unit and Selling a Unit