Regular Production Costs $15 Per Unit and Selling a Unit

question 53

Multiple Choice

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

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Definitions:

Net Domestic Product

A measure of a nation's total economic output, adjusted for depreciation; it is the gross domestic product (GDP) minus the depreciation on a country’s capital goods.

National Income

The total amount of money earned within a country from the production of goods and services over a specified period, usually a year.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation.

GDP

Gross Domestic Product, a measure of the total economic output of a country within a specific time period.