Question
Christian, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following
Christian, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Christian should proceed or not. The required return is 2.5% per month
| Current Policy | New Policy | |
| Price per unit | $1350 | $1550 |
| Cost per unit | $690 | $690 |
| Unit sales per month | 2170 | 2340 |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
