Saucier & Co

question 25

Multiple Choice

Saucier & Co. currently sells 2,200 units a month for total monthly sales of $86,500. The company is considering replacing its current cash only credit policy with a net 30 policy. The variable cost per unit is $18 and the monthly interest rate is 1.2 percent. What is the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant.

• A)1,943 units
• B)2,117 units
• C)2,249 units
• D)2,406 units
• E)2,548 units

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Definitions:

Modal Score

The most frequently occurring value in a set of data, which represents the mode.

Median Score

The median score represents the middle value in a sorted list of numbers, essentially splitting the dataset into two halves.

Mean Score

The average score obtained by computing the sum of all individual scores and dividing by the number of scores.

Measure Of Central Tendency

A descriptive statistic that is the most typical, common, or frequently occurring value for a variable.