You work for Barn Yard Corporation as a credit manager. The Barn Yard Corporation is a wholesaler firm that sells construction materials and high$-$efficiency boilers on credit. The Plumbing and Gas Line Repairing Company has been dealing with your firm for the last ten years and has approached your office to become a repeat customer. The variable cost is $$11,000$ per unit, and the credit price is $$12,000$ each.

Based on historical experience, $3\%$ of such orders are never collected. The required return is $1\mathrm{.}5\%$ per period. The Plumbing and Gas Line Repairing Company never defaulted the payments over the last ten years. Based on the given information, would you fill out the order? What is the break$-$even probability of default?