Currently, Your fiRm Sells 280 Units a Month at a Price

question 364

Multiple Choice

Currently, your firm sells 280 units a month at a price of $125 a unit. You think you can increase your sales by an additional 70 units if you switch to a net 30 credit policy. The monthly interest rate is .5
Percent and your variable cost per unit is $80. What is the incremental cash inflow of the proposed
Credit policy switch?

• A) $3,078
• B) $3,150
• C) $3,334
• D) $3,450
• E) $3,610

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The structured set of methods and principles a society uses to produce, distribute, and consume goods and services, varying from capitalism to socialism.

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