Question: 11. (**) Consider the level production plan for Pennington Cabinets shown in Table 13.5. Perform a cash flow analysis for this production plan, using the
11. (**) Consider the level production plan for Pennington Cabinets shown in Table 13.5. Perform a cash flow analysis for this production plan, using the cash flow analysis in Example 13.8 as a guide. Assume that each cabinet set sold generates a cash inflow of $2800, while each unit produced using regular time generates a cash outflow of $2000 and each cabinet set held in inventory at the end of the month generates a cash outflow of $40.How does this cash flow compare with the one for the mixed strategy
(Table 13.10)? Which plan do you think finance would prefer?
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