Problemcape may products sell 100 units a month at a price, Ask an Expert

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Problem:

Cape May products sell 100 units a month at a price of $237 a unit. The firm believes it can increase sales by an additional 37 units if it switches to a net 30 policy. The monthly interest rate is .3 percent and the variable cost per unit is $167.

Required:

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

A. 2590

B. 9590

C. 3367

D. 4900

E. 7000

Note: Please provide full description.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162495

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