Your company is considering granting credit of 1 month one time for a sale to a new customer. Your variable cost per unit is $35, the current sale price per unit is $170, and the monthly required return is 2.5%. You arent sure what the risk of default of the customer is. What is the highest monthly default rate where you would still want to extend a one-time credit sale to this customer?

a. 35%

b. 50%

c. 79%

d. 26%