Question
Happy Times currently has an all-cash policy. It is considering making a change in the credit policy by going to terms of net 30 days.
Happy Times currently has an all-cash policy. It is considering making a change in the credit policy by going to terms of net 30 days.
| Current Policy | New Policy | |
|---|---|---|
| Price Per Unit | $350 | $357 |
| Cost Per Unit | $285 | $289 |
| Unit Sales Per Month | 1,215 | 1,345 |
The required return is 1.50 percent per month.
What is the break-even price per unit under the new credit policy?
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
