Cape May Products Currently Sells 650 Units a Month at a Price

question 84

Multiple Choice

Cape May Products currently sells 650 units a month at a price of $59 a unit.The firm believes it can increase its sales by an additional 125 units if it switches to a net 30 credit policy.The monthly interest rate is 0.35 percent and the variable cost per unit is $38.What is the incremental cash inflow from the proposed credit policy switch?

• A)$774
• B)$2,625
• C)$4,750
• D)$5,690
• E)$7,375

Analyze the effects of aging populations and demographic transitions on social policies and practices.

Evaluate the consequences of population policies and the importance of sustainable development.

Understand the process of cultural diffusion and its impact on societies.

Understand the difference between System I and System II thinking, including their characteristics and circumstances influencing their use.

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Definitions:

World's Population

This term refers to the total number of humans currently living on Earth.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Birthrate

The ratio of total live births to the population in a specified area or period, usually calculated per thousand inhabitants per year.

Demographic Transition

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.