Consider the level production plan for Pennington Cabinets shown in Table 10 5 Perform a cash ow analysis for this production plan, using the cash ow analysis in Example 10 8 as a guide Assume that each cabinet set sold generates a cash inflow of $2,800, while each unit produced using regular time ...

tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style16 msonumberformat00220022 00000220022 00000220022 00220022 msostylenameCurrency msostyleid4 style0 msonumberformatGenera ...

Consider the level production plan for Pennington Cabinets shown in Table 10.5. Perform a cash ow analysis

Question:

Consider the level production plan for Pennington Cabinets shown in Table 10.5. Perform a cash ﬂow analysis for this production plan, using the cash ﬂow analysis in Example 10.8 as a guide. Assume that each cabinet set sold generates a cash inflow of $2,800, while each unit produced using regular time generates a cash outﬂow of $2,000 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 10.10)? Which plan do you think finance would prefer?