Question detail

MetroMove serves repeat customers while raising prices; the case evidence includes unit contribution of ?3,795, sales of 110 units, and a 20% change in costs or demand. Which option best applies Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance?

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At a glance

MCQ

Type

practice

Style

Topic

Cash flow

Question

  1. A. Use cash inflow, overdraft, rescheduling payments, cash outflow to judge gross profit margin, employees impact, and the business objective in Solving cash flow problems.
  2. B. Give only a definition of Cash flow without using the case evidence.
  3. C. Treat break-even and profit as identical and ignore the effect on employees.
  4. D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use cash inflow, overdraft, rescheduling payments, cash outflow to judge gross profit margin, employees impact, and the business objective in Solving cash flow problems.

Explanation

This answer fits the scenario because Use cash inflow, overdraft, rescheduling payments, cash outflow to judge gross profit margin, employees impact, and the business objective in Solving cash flow problems. The case evidence gives ?5,295, 110 units, and 20%, 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 employees, or ignore the business objective.

Common mistake

Solving cash flow problems common mistake 1

Giving a vague answer instead of directly addressing: Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance..

Answer by clearly explaining how to evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance..

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