The Cellar Door Currently Sells 9,620 Units a Month for Total

question 53

Multiple Choice

The Cellar Door currently sells 9,620 units a month for total monthly sales of $316,000.The company is considering replacing its current cash only credit policy with a net 30 policy.The variable cost per unit is $15 and the monthly interest rate is 1.5 percent.What is the switch break-even level of sales?

• A)9,711 units
• B)9,779 units
• C)9,814 units
• D)9,957 units
• E)9,889 units

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