Your business currently only accepts cash-only transactions. You are considering making a change by going to terms of net 30 days. With the following information, should you change your credit policy? Required return per month is 1.05 percent. Current New Policy Policy $ 13,550 $ 10,500 Price per unit $ 13,150 Cost per unit $ 10,500 Unit sales per 2,750 3,000 month
Your business currently only accepts cash-only transactions. You are considering making a change by going to terms of net 30 days. With the following information, should you change your credit policy? Required return per month is 1.05 percent. Current New Policy Policy $ 13,550 $ 10,500 Price per unit $ 13,150 Cost per unit $ 10,500 Unit sales per 2,750 3,000 month
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 10QTD
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Question
![Your business currently only accepts cash-only transactions. You are
considering making a change by going to terms of net 30 days. With the following
information, should you change your credit policy? Required return per month is 1.05
percent.
Current
New Policy
Policy
$ 13,150
$ 10,500
$ 13,550
$ 10,500
Price per unit
Cost per unit
Unit sales per
2,750
3,000
month](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6b06537-ee15-4801-bb0c-29328dee68da%2F44cffa10-486a-4f02-8807-7231b127748b%2Fehh5xjr_processed.png&w=3840&q=75)
Transcribed Image Text:Your business currently only accepts cash-only transactions. You are
considering making a change by going to terms of net 30 days. With the following
information, should you change your credit policy? Required return per month is 1.05
percent.
Current
New Policy
Policy
$ 13,150
$ 10,500
$ 13,550
$ 10,500
Price per unit
Cost per unit
Unit sales per
2,750
3,000
month
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