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2. (b) Your firm currently sells 215 units a month at a price of $90 a unit. You think you can increase your sales by

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2. (b) Your firm currently sells 215 units a month at a price of $90 a unit. You think you can increase your sales by an additional 45 units if you switch to a net 30 credit policy. (i) The monthly interest rate is .5 percent and your variable cost per unit is $60. Should your firm switch policies? Why? (ii) what is the minimum increase in sales that would make the switch profitable

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