Currently,The Toy Box Sells 465 Units a Month at an Average

question 9

Multiple Choice

Currently,The Toy Box sells 465 units a month at an average price of $42 a unit.The company thinks it can increase sales by an additional 130 units a month if it switches to a net 30 credit policy.The monthly interest rate is 0.4 percent and the variable cost per unit is $21.What is the incremental cash inflow of the proposed credit policy switch?

• A)$2,120
• B)$2,730
• C)$2,760
• D)$2,810
• E)$5,070