Callahan Computers Has Decided to Offer Credit to Its Customers

question 47

Multiple Choice

Callahan Computers has decided to offer credit to its customers during the spring selling season. Sales are expected to be 1,000 units. The average cost per unit is $850. The owner knows that only 93% of the customers will be able to make their payments. To identify the remaining 7%, the company is considering subscribing to a credit agency. The initial charge for this service is $10,000, with an additional charge of $8 per individual report. Calculate the net savings of subscribing the credit agency.

• A) $42,000
• B) $41,500
• C) $41,000
• D) $40,500
• E) $40,000

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Definitions:

OB Research

The study of individual and group behavior in organizational settings through systematic analysis and application of knowledge.

Talent and Potential

The natural aptitude or skill possessed by an individual and their capacity to develop and succeed in certain tasks or to progress in their career.

Counterproductive Work Behaviors

Actions by employees that harm or intend to harm a company and its resources.

Voluntary

Refers to actions or services performed out of free will without any coercion or legal obligation.