A company sells all its products on an all-cash policy. It typically sells 50 units per month at a price of $920 per unit. The per unit variable cost is $700. If the company grants credits for 30 days, it can increase its sales by 10 units without changes to price or costs per unit. The annual required return is 10 percent. The company expects to collect on 98% of sales to customers. How much would the company's benefit of switching be?

Answer rating: 100% (QA)

Lets break down the calculation step by step 1 Current Sales Revenue and Variable Costs Units sold p... View the full answer