Your Current Sales Consist of 45 Units Per Month at a Price

question 5

Multiple Choice

Your current sales consist of 45 units per month at a price of $390 a unit.You are weighing the pros and cons of switching to a net 30 credit policy from your current cash only policy.If you decide to switch your credit policy you also plan to increase the sales price to $410 a unit.The monthly interest rate is 1.4 percent.What is the break-even default rate of the proposed switch?

• A)3.55 percent
• B)3.68 percent
• C)4.29 percent
• D)4.71 percent
• E)4.88 percent

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Definitions:

Input Voltages

The voltages that are applied to the terminals of a device or a circuit.

Output Voltages

The voltages delivered by a device or circuit to its load, often regulated to meet specific requirements for various applications.

Industrial Use

Refers to applications and activities involving manufacturing, production, and large-scale operations where equipment and machinery are used.

Control Transformer

A common type of isolation transformer generally used to change line voltage of 240 or 480 volts into 120 volts to operate motor-control equipment.