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i keep getting the wrong answer. please help! Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales
i keep getting the wrong answer. please help!
Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales by offering supermarkets 1 month of free credit. The price per carton is $130, and the cost per carton is $80 The unit sales will Increase from 1080 cartons to 1140 per month if credit is granted. Assume all customers pay their bills and take ful advantage of any credit period offered a. If the interest rate is t% per month, what will be the change in the firm's total monthly profits on a present value basis if credit is offered to all customers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Change in total monthly profit b. If the interest rate is 1.5% per month, what will be the change in the firm's total monthly profits on a present value basis if credit is offered to alil customers? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) Change in total monthly profit ut the firm can offer the credit only as a special deal to new customers.while existing C. Assume the interest rate is 15% per month b customers will continue to pay cash on delivery What will be the change in the firm's total monthly profits on a present value basis under these conditions? (Do not round intermedilate colculations. Round your onswer to 2 decimel places) Change in total monthy proitStep by Step Solution
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