The Cycle Shoppe Has Decided to Offer Credit to Its

question 69

Multiple Choice

The Cycle Shoppe has decided to offer credit to its customers during the spring selling season. Sales are expected to be 64 bikes with an average cost of $329 each. Four percent of customers are expected to default. To help identify those individuals, the shop is considering subscribing to a credit agency. The initial charge for their services is $250 with an additional charge of $7.50 per individual report. What is the amount of the net savings from subscribing to the credit agency?

• A) $108
• B) $92
• C) $84
• D) $112
• E) $103

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Definitions:

Cognitive-Behavioral

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Insight Therapy

A form of psychotherapy aimed at increasing a patient’s awareness of underlying motives and defenses.

Aaron Beck

A psychiatrist known as the father of cognitive therapy, which focuses on changing unhelpful thinking patterns to improve emotional regulation and develop personal coping strategies.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions.