Credit Analysis $[$LO$2]$ Consider the following information about two

alternative credit strategies:

The higher cost per unit reflects the expense associated with credit orders,

and the higher price per unit reflects the existence of a cash discount. The

credit period will be $90$ days, and the cost of debt is $\mathrm{.}75$ percent per month.

a$.$ Based on this information, should credit be granted?

b$.$ In part $($a$),$ what does the credit price per unit have to be to break even?

c$.$ In part $($a$),$ suppose we can obtain a credit report for $$1\mathrm{.}50$ per customer.

Assuming that each customer buys one unit and that the credit report

correctly identifies all customers who will not pay, should cre$$it be extended?