Currently, Tanner's Sells 69 Units a Month at an Average

question 25

Multiple Choice

Currently, Tanner's sells 69 units a month at an average price of $499 a unit. The company thinks it can increase sales by an additional 32 units a month if it switches to a net 30 credit policy. The monthly interest rate is .48 percent and the variable cost per unit is $216. What is the incremental cash inflow of the proposed credit policy switch?

• A) $10,120
• B) $9,056
• C) $12,760
• D) $17,810
• E) $15,968

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