Your company is considering granting credit to a new customer for a one time sale. The variable
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Question:
Your company is considering granting credit to a new customer for a one time sale. The variable cost per unit is $35; the current price per unit is $49; and the monthly required return (cost of capital) is 25%. What probability of default for the new customer would make the firm break even when granting credit for the one time sale?
Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
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