Saucier & Co

question 62

Multiple Choice

Saucier & Co.currently sells 2,100 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)2,145 units
• D)2,406 units
• E)2,548 units

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Definitions:

BCG Matrix

A strategic business tool developed by the Boston Consulting Group to help organizations with portfolio management, analyzing business units or product lines based on their market growth rate and market share.

SWOT Analysis

A strategic planning tool used to identify and analyze the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Per-Unit Costs

The total expense incurred to produce, store, and sell one unit of a product or service, including material, labor, and overhead costs.

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period.