In Problem 14, what is the break-even price per unit that should be charged under the new credit policy? Assume that the sales figure under the new policy is 3,300 units and all other values remain the same.

Data from Problem 14

The Killarney Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if Killarney should proceed or not. The required return is 3 percent per period.

Transcribed Image Text:

Price per unit Cost per unit Unit sales per month Current Policy $ $ 70 40 3,200 New Policy $ 75 $ 40 3,500