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The Cold Fusion Corporation (manufacturer of the Mr. Fusion home power plant) is considering a new credit policy. The current policy is cash only. The

The Cold Fusion Corporation (manufacturer of the Mr. Fusion home power plant) is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for one period. Based on the following information, determine if a switch is advisable. The interest rate is 2% per period. PART 7 Short-Term Financial Planning and Management 814 Current Policy New Policy Price per unit $ 175 $ 175 Cost per unit $ 130 $ 130 Sales per period in units 1,000 1,100

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