Question: 1. A firm is evaluating a switch from a cash-only to a net 30 credit policy. The present value of the cost of switching is

1. A firm is evaluating a switch from a cash-only to

1. A firm is evaluating a switch from a cash-only to a net 30 credit policy. The present value of the cost of switching is RM108,000. The contribution margin (price - variable cost) per unit of the firm's product is RM60. The firm currently sells 900 units per month. If the required monthly return is 1.5% and the product's contribution margin is unchanged, what is the minimum number of units the firm must sell under the new policy to make the switch worthwhile? Select one: a. 1,027 b. 927 c. 1,100 d. 873 2. Which of the following measures should be taken to deal with the issue relating to NOT having the right item at the right place at the right time? Select one: a. Decrease the inventory order. b. Decrease the reorder point. c. Increase the safety stock. d. Decrease the safety stock

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