Firm X is selling a vehicle with an MSRP of $30,000 and dealer discount of 10%. Unit cost is $20,000 and fixed costs are $1.4 billion. How many units must they sell to break even?

a.		140,000
b.		20,000
c.		200,000
d.		400,000

2.

Question 7

A firm selling its product for $25,000 has overproduced, increasing inventory by 40,000 units at a cost of $15,000 per unit. What is the impact of the inventory change on cash flow?

	a.	inflow of $1 billion
	b.	no effect on cash
	c.	inflow of $400 million
	d.	outflow of $400 million
	e.	outflow of $600 million

3.

Projected sales for Vehicle Z are 365,000. Current inventory is 75,000 and the inventory target is 30 days. What should the scheduled production be?

a.		290,000
b.		440,000
c.		320,000
d.		365,000