Question
beautiful corp is a company that manufactures shoes and currently only applies cash sales. This New Year's holiday season, the company is considering changing its
beautiful corp is a company that manufactures shoes and currently only applies cash sales. This New Year's holiday season, the company is considering changing its cash sales policy to 45 days credit. The new policy is expected to increase sales from 1200 units per month to 1350 units per month. The current selling price per unit and variable cost per unit are IDR 175,000 and IDR 100,000, respectively. However, if the product is sold on credit, the selling price and variable cost per unit will be constant. The desired yield is 3% per month. Based on this information, calculate the NPV of the new credit policy! Is beautiful corp. should change its sales policy?
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