Homework: M6: Cost of Capital and WC Managment -- Chapters Save Score: 1.25 of 5 pts 10 of 12 (12 complete) HW Score: 65.3%, 35.92 of 55 pts P13-11 (similar to) 3 Question Help Credit screening. Tennindo, Inc. is starting up its new, cost-efficient gaming system console, the yuu. Tennindo currently has 4,500 cash-paying customers and makes a profit of $40 per unit. Tennindo wants to expand its customer base by allowing customers to buy on credit. It estimates that credit sales will bring in an additional 1,300 customers per year, but that there will also be a default rate on credit sales of 5%. It costs $220 to make a you, which retails for $260. If all customers (old and new) buy on credit, what is the cost of bad debt without credit screening? What is the most Tennindo would pay for credit screening that accurately identifies bad-debt customers prior to the sale? What are the increased profits from adding credit sales for customers with and without credit screening? Should Tennindo offer credit sales if credit screening costs $10 per customer? If all customers (old and new) buy on credit, what is the cost of bad debt without credit screening? $ 63,800 (Round to the nearest dollar.) What is the most Tennindo would pay for credit screening that accurately identifies bad-debt customers prior to the sale? $6.97 (Round to the nearest cent.) If credit screening costs $10 per customer, what are the increased profits from adding credit sales for customers with and without credit screening? (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. ? part remaining Clear All Check