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The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent
The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period. Based on the following information, what is the break-even price per unit that should be charged under the new credit policy? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Current Policy | New Policy | ||||
Price per unit | $ | 104 |
|
| ? |
|
Cost per unit | $ | 47 |
| $ | 47 |
|
Unit sales per month |
| 3,240 |
|
| 3,400 |
|
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