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Your company is evaluating a switch from a cash-only policy to a net 30 policy. The price per unit is P and the variable cost
Your company is evaluating a switch from a cash-only policy to a net 30 policy. The price per unit is P and the variable cost per unit is V. The company currently sells 1,000 units per month. Under the proposed policy the company will sell 1,100 units per month. The required monthly return is 2%. What range of P (as a function of V), would make the company adopt this proposed policy?
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