Answer:
Increasing Inventory by 40,000 units at a cost of $15,000 per unit
The Cost of producing 40,000 units extra = $40,000 *$15,000 = $600,000,000
Conclusion: As this is an additional cost incurred by the firm by increasing inventory by 40,000 unit at $15,000 per unit, it will be term as cash outflow. The impact of the inventory change on cash flow is outflow.
