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Preston Milled products currently sells a product with a variable cost per unit of $21.75 and a unit selling price of $39.75. At the present
Preston Milled products currently sells a product with a variable cost per unit of $21.75 and a unit selling price of $39.75. At the present time, the firm only sells on a cash basis with monthly sales of 330 units. The monthly interest rate is 1.1 percent. What is the switch break-even point if the firm switched to a net 30 credit policy? Assume the selling price per unit and the variable costs per unit remain constant. |
345 units
342 units
343 units
338 units
341 units
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