Question
The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.6% per
The Berry Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.6% per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? Assume that the sales figure under the new policy is 3,700 units and all other values remain the same. (Round the final answer to 2 decimal places. Omit $ sign in your response.)
| Current Policy | New Policy | |||||
| Price per unit | $ | 77 | $ | 79 | ||
| Cost per unit | $ | 39 | $ | 39 | ||
| Unit sales per month | 3,350 | 3,700 | ||||
| Break-even price? | ||||||
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
