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Preston Milled products currently sells a product with a variable cost per unit of $20.75 and a unit selling price of $38.75. At the present time, the firm only sells on a cash basis with monthly sales of 290 units. The monthly interest rate is 1.2 percent. What is the switch break-even point if the firm switched to a net 30 credit policy? Assume the selling price per unit and the variable costs per unit remain constant.

304 units

301 units

300 units

302 units

298 units

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92425786

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