Saxon Corporation Sells a Product for $48 with Costs of $33

question 77

Multiple Choice

Saxon Corporation sells a product for $48 with costs of $33 per unit.Saxon uses a 9% rate of return for all its calculations.The CFO estimates that there is a 20% probability of a prospective new customers seeking credit will go bankrupt within the next 6 months.Customer wishes to place an order for 1,000 units of the product.

• A)Extend credit; total benefit of $3,780
• B)Extend credit; total benefit of $3,880
• C)Extend credit; total benefit of $3,980
• D)Extend credit; total benefit of $4,080

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Definitions:

Parochialism

Parochialism assumes the ways of your culture are the only ways of doing things.

Reflective Reasoning

A cognitive process involving active and careful consideration of beliefs or knowledge in light of evidence or arguments.

Cross-Cultural Communication

The process of recognizing and understanding the differences and similarities in communication that occur across different cultures.

Language Differences

Pertains to the variability in language use across cultures, regions, or social groups, affecting communication and understanding.