A Firm That Makes Only Cash Sales Has the Luxury

question 83

Essay

A firm that makes only cash sales has the luxury of no uncollectible receivables at the expense of forgone sales.Does it make financial sense to allow credit sales if doing so would increase sales from 1,000 units monthly to 1,150, at a sales price of $50, and a present value of costs of $39 per unit? Assume that all sales will now be made on credit and that 6% of sales will end up being uncollectible after the 30-day payment period.The opportunity cost of capital is 1% per month.

Understand the concept and components of the medical model in psychology, including diagnosis, prognosis, and etiology.

Recognize the criteria for distinguishing normal from abnormal behavior, including adaptive functioning, personal distress, and deviation from social norms.

Identify historical perspectives on abnormal behavior and the evolution of the medical model.

Critique the medical model and understand the arguments presented by its critics.

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Definitions:

Obedience

The act of following orders or instructions from an authority figure, or conforming to rules or laws.

Solomon Asch

A psychologist best known for his research on social conformity.

Leon Festinger

A social psychologist known for his theory of cognitive dissonance, which describes the discomfort felt by an individual when holding contradictory beliefs or values.

Verbal Prompts

Instructions or cues delivered through speech that are designed to encourage or induce someone to take a desired action.