Question detail
CycleNest serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?4,154, sales of 589 units, and a 23% change in costs or demand. Which option best applies Calculate cash flow forecast figures, including total costs, total revenue and net cash flow?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Quantitative skills in business
Question
- A. Use costs, cash flow forecast, revenue to judge unit contribution, owners impact, and the business objective in Calculation requirements.
- B. Give only a definition of Quantitative skills in business without using the case evidence.
- C. Treat break-even and profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use costs, cash flow forecast, revenue to judge unit contribution, owners impact, and the business objective in Calculation requirements.
Explanation
Choose this response because Use costs, cash flow forecast, revenue to judge unit contribution, owners impact, and the business objective in Calculation requirements. The case evidence gives ?5,654, 589 units, and 23%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse break-even and profit, miss the owners, or ignore the business objective.
Common mistake
Calculation requirements common mistake 1
Giving a vague answer instead of directly addressing: Calculate cash flow forecast figures, including total costs, total revenue and net cash flow..
Answer by clearly explaining how to calculate cash flow forecast figures, including total costs, total revenue and net cash flow..
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