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8) The Cold Fusion Corp is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for

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8) The Cold Fusion Corp is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for one period. Based on the following information; determine if a switch is advisable. The interest rate is 2 per cent per period. 5 Marks Price per unit Cost per unit Sales per period in units Current Policy $175 $130 New Policy $175 $130 1100 1000

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