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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Definitions:

Personality Development

The gradual growth and change in an individual's personality characteristics and behavioral patterns throughout life.

Lifespan

The duration of existence of an individual from birth to death, or the length of time an entity is expected to function or be operational.

Cohesive Identity

The sense of self that is well-integrated and consistent across different contexts and over time.

Identity Crisis

A phase marked by doubt and perplexity, during which an individual feels uncertain about their identity, often triggered by shifts in their societal role or anticipated goals.