You Are Currently Selling 72 Units a Month at a Price

question 39

Multiple Choice

You are currently selling 72 units a month at a price of $210 a unit.Your variable cost of each unit is $130.If you switch from your current cash sales only policy to a net 30 policy you think your sales will increase to a total of 95 units per month.The monthly interest rate is 1.5 percent.What is the net present value of this proposed switch using the accounts receivable approach?

• A)$104,557
• B)$114,829
• C)$134,822
• D)$136,516
• E)$141,520

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Definitions:

Collective Unconscious

A term coined by Carl Jung to describe the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Accountable

Being responsible for one's actions or decisions, often implying a willingness to explain or be judged for them.

Anonymous

This term describes something or someone whose name is not known or not made public, often used in situations requiring privacy or confidentiality.

Deindividuation

It refers to the phenomenon where people in groups feel less accountable for their actions, which can result in an increase in impulsive and deviant acts due to a sense of anonymity.