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?
Month Forecast Regular Production
January 250 250
February 200 200
March 300 300
April 400 400
A) $11,500
B) $7,500
C) $4,500
D) $3,000
Answer: D
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