Your Current Sales Consist of 60 Units Per Month at a Price

question 276

Multiple Choice

Your current sales consist of 60 units per month at a price of $95 a unit. You are considering switching to a net 30 credit policy from your current cash only policy. If you switch, the credit price
Will be $100 and the cash price will be $95 a unit. The monthly interest rate is 1.25 percent. What is
The break-even default rate of the proposed switch?

• A) 3.78 percent
• B) 3.81 percent
• C) 3.97 percent
• D) 4.00 percent
• E) 4.05 percent

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Definitions:

Method Invocation

The process of calling or executing a method in programming, where the method's instructions are carried out.

Abstract Class

A class that cannot be instantiated on its own and is designed to be subclassed, often containing abstract methods that must be implemented by subclass.

Class Modifier

A keyword in object-oriented programming languages that defines the scope or behavior of a class, such as public, final, or abstract.

Object Oriented Programming

A programming paradigm based on the concept of "objects", which can contain data, in the form of fields, and code, in the form of procedures.