Candy Corporation Sells a Product for $25 with Costs of $20

question 39

Multiple Choice

Candy Corporation sells a product for $25 with costs of $20 per unit.Candy uses a 12% rate of return for all its calculations.The CFO estimates that there is a 25% probability of a prospective new customers seeking credit will go bankrupt within the next 6 months.Customer wishes to place an order for 2,500 units of the product

• A)Extend credit; total benefit of $5,300
• B)Extend credit; total benefit of $5,500
• C)Do not extend credit; total loss of $5,300
• D)Do not extend credit; total loss of $5,500

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Definitions:

Neural Connections

The links between neurons in the brain, enabling communication via neurotransmitters and forming the basis of all brain functions.

Nerve Cells

Also known as neurons, these are the basic building blocks of the nervous system responsible for transmitting information throughout the body.

Middle Adulthood

The stage of life that typically ranges from approximately age 40 to 65, characterized by stability, maturity, and the continuation of personal and professional development.

Cognitive Changes

Alterations in mental processes such as thinking, learning, and remembering that may occur due to various factors including aging, disease, or psychological conditions.