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

---

Definitions:

Total Expenditures

The total amount of money spent by individuals, firms, or the government on goods and services.

Price of Labor

The wage rate or compensation paid to employees for their work, often determined by the dynamics of supply and demand in the labor market.

Isocost Line

A graph showing all possible combinations of inputs that can be purchased for the same cost.

Combinations of Capital

Various ways in which a firm can organize its financial resources and assets to support its production process and operations.