You Are Currently Selling 60 Units a Month at a Price

question 243

Multiple Choice

You are currently selling 60 units a month at a price of $195 a unit. Your variable cost of each unit is
$145. If you switch from your current cash sales only policy to a net 30 policy you think your sales
will increase to a total of 100 units per month. Your monthly interest rate is 1.5 percent. What is the
net present value of this proposed switch using the accounts receivable approach?

• A) $115,833
• B) $126,667
• C) $133,333
• D) $145,667
• E) $152,833

Understand the development and significance of moral reasoning in children.

Appreciate the role of educational strategies and classroom settings in cognitive development.

Understand Piaget's theory of cognitive development and its stages.

Identify and explain the concept of seriation in cognitive development.