Problemcape may products currently sells 80 units a month, Ask an Expert

Finance

Problem:

Cape May Products currently sells 80 units a month at a price of $238 a unit. The firm believes it can increase its sales by an additional 38 units if it switches to a net 30 credit policy. The monthly interest rate is .2 percent and the variable cost per unit is $168.

Required:

Question: What is the incremental cash inflow from the proposed credit policy switch?

Note: Please provide full description.

$3,192

$4,480

$2,660

$5,600

$8,260

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147806

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