Travel and Tow Trailers Inc

question 14

Multiple Choice

Travel and Tow Trailers Inc.makes small trailers for light-duty towing behind SUVs and small pickup trucks.Its trailers typically sell for $2,500.Many of its customers have asked for credit terms to aid in purchasing the trailers.The firm's finance department has estimated the following profile for its light-duty trailers and customer base: Annual sales: 10,000 trailers
Annual production costs per trailer: $1,500
Lost sales if credit is not provided for customers: 2,000 trailers
Default rate if all customers purchase on credit: 3.00%
What is the dollar value of bad debts the firm expects to accumulate over a year?

• A)$9,250,000
• B)$4,500,000
• C)$8,000,000
• D)$450,000

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Definitions:

Spatial Tasks

Cognitive tasks involving the processing of visual and spatial information, such as navigation, geometry, or visualizing objects from different angles.

SES (Socioeconomic Status)

A combined measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Male Advantage

The phenomenon where males, on average, perform better than females in certain cognitive or physical tasks, often discussed within the context of societal or biological influences.

Female Superiority

The belief or assertion that women are inherently superior to men, which can be discussed in various socio-cultural, biological, or psychological contexts.