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Mendoza Lighting sells 72 units per month at an average price of $529 per unit. The company thinks it can increase sales by an additional
Mendoza Lighting sells 72 units per month at an average price of $529 per unit. The company thinks it can increase sales by an additional 24 units per month if it switches to a net 30 credit policy. The monthly interest rate is .32 percent and the variable cost per unit is $317. What is the incremental cash inflow of the proposed change in the credit policy? Multiple Choice $12,696 $8,633 $5,088 $1,628 $3,460
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