What is the effective annual cost of the following credit terms.

• 2/10, net 50
• 2/20, net 70

Assume a 360 day year.

18.37% / 15.79%

18.37% / 14.69%

14.69% / 17.38%

17.38% / 18.37%

Hulk Enterprise manufactures brake pads. The firms revenue for this past year was $12 million while its fixed expenses were $2.5 million. Variable costs were 30% of the firms revenue. What is the firms break-even point in dollars? Please round to the nearest dollar

		$3,571,429
		$4,284,896
		$3,758,195
		$2,054,795