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:

Fractured Hip

A broken bone in the hip, often resulting from trauma or falls, particularly prevalent in the elderly due to osteoporosis.

Musculoskeletal Impairment

A condition that affects the bones, muscles, ligaments, or tendons, leading to limitations in movement or function.

Walker

A mobility aid used to assist with walking, comprised of a frame that the user holds and moves forward to maintain support and balance.

Torticollis

A condition in which the neck muscles contract involuntarily, causing the head to twist or tilt to one side.