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Credit screening. Tennindo, Inc. is starting up its new, cost-efficient gaming system console, the yuu. Tennindo currently has 4,000 cash-paying customers and makes a profit
Credit screening. Tennindo, Inc. is starting up its new, cost-efficient gaming system console, the yuu. Tennindo currently has 4,000 cash-paying customers and makes a profit of $60 per unit. ennindo wants to expand its customer base by allowing customers to buy on credit. It estimates that credit sales will bring in an additional 1,200 customers per year, but that there will also be a lefault rate on credit sales of 5%. It costs $260 to make a yuu, which retails for $320. Screendoor, Inc. is a credit-screening consulting firm. Screendoor advises Tennindo, Inc. that it can offer a redit-screening device that is 90% accurate and costs $5 per customer to apply. Determine whether Tennindo should use Screendoor's credit-screening system
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