Saucier & Co

question 62

Multiple Choice

Saucier & Co.currently sells 2,100 units a month for total monthly sales of $86,500.The company is considering replacing its current cash only credit policy with a net 30 policy.The variable cost per unit is $18 and the monthly interest rate is 1.2 percent.What is the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant.

• A)1,943 units
• B)2,117 units
• C)2,145 units
• D)2,406 units
• E)2,548 units

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Definitions:

Free Trade

A policy or practice of trading between countries, with minimal restrictions or tariffs, to encourage economic exchange.

Economic Well-being

Refers to the overall quality of life based on financial stability, access to resources, and the ability to meet basic needs.

Transnational Corporations

are business entities that operate in multiple countries but are headquartered in one country, significantly influencing global economics and politics.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by trade and investment and aided by information technology.