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Patnaik Home Supply sells 783 units per month at an average price of $106 per unit. The firm believes it can increase its monthly sales
Patnaik Home Supply sells 783 units per month at an average price of $106 per unit. The firm believes it can increase its monthly sales by an additional 56 units if it switches to a net 30 credit policy. The monthly interest rate is .25 percent and the variable cost per unit is $57.50. What is the monthly incremental cash inflow from the proposed credit policy switch?
Multiple Choice
$2,716
$1,995
$5,936
$4,452
$3,248
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