Question: Jill Walters your boss at Walters s Waterbeds Futons has
Jill Walters, your boss at Walters’s Waterbeds & Futons, has seen the zero percent interest advertising of other furniture stores and wants to use this promotion to attract new customers. Currently, her cost to buy a futon is $ 200 and she is selling them for $ 550. She is also charging 18 percent interest for customers who buy on credit. Jill wants to offer 24 months’ interest- free financing. What price must she charge if she wants to maintain her current profit margin and still make 18 percent interest?
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