Your Firm Currently Sells 85 Units a Month at a Price

question 124

Multiple Choice

Your firm currently sells 85 units a month at a price of $400 a unit. You think you can increase your sales by an additional 30 units if you switch to a net 30 credit policy. The monthly interest rate is.5 percent and your variable cost per unit is $280. What is the incremental cash inflow from the proposed credit policy switch?

• A) $2,400
• B) $3,200
• C) $3,600
• D) $10,800
• E) $12,000

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Definitions:

Respiratory Bronchiole

The smallest air passages in the lungs where gas exchange occurs, connecting the terminal bronchioles to alveolar sacs.

Terminal Bronchiole

The terminal bronchiole is the smallest airway in the respiratory tract that conducts air and does not engage in gas exchange.

Alveolar Duct

Tiny ducts in the lungs that connect the respiratory bronchioles and alveolar sacs, a key part in the pathway of air to the alveoli.

Primary Bronchus

One of the two main branches of the trachea that convey air into the lungs.