Your Current Sales Consist of 45 Units Per Month at a Price

question 5

Multiple Choice

Your current sales consist of 45 units per month at a price of $390 a unit.You are weighing the pros and cons of switching to a net 30 credit policy from your current cash only policy.If you decide to switch your credit policy you also plan to increase the sales price to $410 a unit.The monthly interest rate is 1.4 percent.What is the break-even default rate of the proposed switch?

• A)3.55 percent
• B)3.68 percent
• C)4.29 percent
• D)4.71 percent
• E)4.88 percent

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Definitions:

Anxiety

An emotion of anxiety or tension, characteristically over an event that is about to happen or whose result is indeterminate.

Sexual Gratification

Sexual Gratification refers to the pleasure or satisfaction derived from sexual activities or experiences.

Kissing

The act of pressing one's lips against the lips or skin of another person or object often as a gesture of affection or greeting.

Fixation

In psychology, an unhealthy or obsessive attachment to a person, object, or stage of development.