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13-98 Credit screening Tennindo, Inc is starting up its new, cost-efficient gaming system console, the you. Tennindo currently has 3 500 cash paying customers and
13-98
Credit screening Tennindo, Inc is starting up its new, cost-efficient gaming system console, the you. Tennindo currently has 3 500 cash paying customers and makes a profit of $60 per unit. Tennindo wants to expand its customer base by allowing customers to buy on credit it estimates that creant sales will bring in an additional 1,000 customers per year, but that there will also be a default rate on credit sales of 5%. It costs $220 to make a you, which retails for $200. Screendoor, Inc is a credit screening consulting firm Screendoor advises Tennindo, ing that it can offer a credit-screening device that is 92% accurate and costs 84 per customer to apply. Determine whether Tennindo should use Screendoor's credit- screening system What is Tennindo's promt by adding credit sales for customers without using Screendoor's credt-screening system? $(Round to the nearest dollar.) What is Tennindo's profit by adding credit sales for customers with using Screendoor's credit-screening system? $(Round to the nearest dollar) Should Tennindo use Screendoor's credit screening system? (Select the best response) O A. Yes, Tennindo should use Screendoor's system because the credit screening will increase the firm's pront B. No, Tennindo should not use Screendoor's system because the credit screening we decrease the firm's profit Step by Step Solution
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