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Your firm currently sells 500 units a month at a price of $75 a unit. You think you can increase your sales by an additional
Your firm currently sells 500 units a month at a price of $75 a unit. You think you can increase your sales by an additional 130 units if you switch to a net 30 credit policy. The monthly interest rate is .4 percent and your variable cost per unit is $35. What is the incremental cash inflow from the proposed credit policy switch?
Select one:
a. $6,000
b. $2,400
c. $3,600
d. $5,200
e. $1,800
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