Currently,Glasgow Importers Sells 280 Units a Month at a Price

question 33

Multiple Choice

Currently,Glasgow Importers sells 280 units a month at a price of $729 a unit.The firm believes it can increase its sales by an additional 40 units if it switches to a net 30 credit policy.The monthly interest rate is 0.5 percent and the variable cost per unit is $480.What is the net present value of the proposed credit policy switch?

• A)-$213,360
• B)-$9,240
• C)$190,200
• D)$1,287,520
• E)$1,768,680

Identify the point at which diseconomies of scale set in for a firm.

Distinguish between economies and diseconomies of scale.

Interpret the effects of input increases on average and marginal costs.

Comprehend the relationship between the scale of production and long-run average cost curve shapes.

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Definitions:

Special Corporate Perks

Benefits or privileges provided by companies to their employees, beyond the standard offerings of salary and health benefits.

Increased Salary

An upward adjustment in an employee's pay rate, often resulting from performance evaluations, promotions, or changes in the market rate for the job.

Community Relations

The process of fostering and improving the ties between a company and the local communities where it functions.

Amazon

A multinational technology company known for its e-commerce platform, cloud computing services, and digital streaming.