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Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30
Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what is the break-even price per unit under the new credit policy? The required return is 0.88 percent per month. (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) |
Current Policy | New Policy | |||||
Price per unit | $ | 235 | ? | |||
Cost per unit | $ | 173 | $ | 178 | ||
Unit sales per month | 1,680 | 1,735 | ||||
Break-even price | $ |
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