Saucier Co

question 41

Multiple Choice

Saucier Co. currently sells 1,208 units a month for total monthly sales of $209,600. The firm is considering replacing its current cash only credit policy with a net 30 policy. The variable cost per unit is $106 and the monthly interest rate is .71 percent. What is the new sales quantity at the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant.

• A) 1,143 units
• B) 1,267 units
• C) 1,230 units
• D) 1,306 units
• E) 1,148 units

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Definitions:

Atmospheric Gases

The gases that make up Earth's atmosphere, including nitrogen, oxygen, carbon dioxide, and argon, among others.

Oxygen Saturation

A measure of the amount of oxygen carried by hemoglobin in the blood, usually expressed as a percentage of the maximum carrying capacity.

Humidity

A measure of the amount of water vapor in the air.

Tidal Volume

The volume of air inhaled or exhaled in a normal breath at rest.