Determine the Break-Even Probability of Collection for the Following Seller

question 66

Essay

Determine the break-even probability of collection for the following seller: $2,000 average invoice, 64% costs, 1% per month opportunity cost of capital.Assume that production costs were just paid and that receivables are outstanding an average of two months.Given these characteristics of credit, what is the expected profit from a customer that is perceived to offer an 85% probability of collection?

---

Definitions:

Hegemonic Masculinity

A concept describing the norms that dictate the dominant form of masculinity within a particular culture, often marginalized other masculinities and femininities.

Bourgeois

A term that describes the middle class, particularly those with capitalist interests and values, often contrasted with the proletariat in Marxist contexts.

Natural

Existing in or derived from nature; not made, caused by, or processed by humankind.

Post-Structuralists

Scholars and thinkers who critique and extend structuralism, emphasizing the instability of meaning, the role of power in discourse, and the complex interplay of social and cultural structures.