Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions