Saucier & Co. currently sells 1,400 units a month for total monthly sales of $98,500. The company is considering replacing its current cash only credit policy with a net 30 policy. The variable cost per unit is $18 and the monthly interest rate is 1.1 percent. What is the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant. A. 1,743 units B. 1,467 units C. 1,421 units D. 1,406 units E. 1,548 units

Saucier & Co. currently sells 1,400 units a month for total monthly sales of $98,500. The company is considering replacing its current cash only credit policy with a net 30 policy. The variable cost per unit is $18 and the monthly interest rate is 1.1 percent. What is the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant. A. 1,743 units B. 1,467 units C. 1,421 units D. 1,406 units E. 1,548 units

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 5P

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