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:

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins and the frequency of data in each bin is represented by the height of the bar.

Relative Frequency Histogram

A type of histogram where each bar's height represents the proportion of data that falls into each category, compared to the total data set.

Qualitative Data

Data that describes qualities or characteristics that cannot be measured with numbers, often involving categories or descriptions.

Quantitative Data

Numerical data that can be measured and quantified, enabling mathematical analysis and statistical operations.