Question: Consider the following information. Each unit sells for $300. Regular production and overtime production costs are $150 and $250 per unit, respectively. The cost to

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Consider the following information. Each unit sells for $300. Regular production and overtime production costs are $150 and $250 per unit, respectively. The cost to hold a unit in inventory for one month is $10. E Click the icon to view the production information. a. Develop a cash flow analysis for this problem. Fill in the table below (enter your responses as whole numbers and include a minus sign if necessary). M en Forecasted sales 900 1,100 1,300 1,500 1,700 1,600 January February March April May June Regular Overtime production production 1,250 1,250 1,250 1,250 1,250 50 1,250 450 Endina inventory 350 500 450 Month Forecasted sales Regular Overtime Ending production production inventory Cash inflows Cash outflows Net flows Cumulative net flows January February March April May June b. Why do the net cash flows for April and May look so much better than those for the other months? What are the implications for building up and draining down inventories under a level production plan? The net cash flows for April and May are much higher than the other months because the number of units sold is much than the number of units produced. The implications of building up and draining down inventory are that the production costs V], although inventory costs may be high. higher lower will be unstable will remain stable

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