Question: 4. Answer the following questions based on the information below Current credit policy(n/a) Proposed credit policy (net 30) 25 10 25 10 Price (RO) Variable

4. Answer the following questions based on the information below Current credit policy(n/a) Proposed credit policy (net 30) 25 10 25 10 Price (RO) Variable cost per unit (RO) Quantity Monthly rate 1,000 2,500 2% What is the incremental cash flows from switching credit policies? (1 pts) b. What is the cost of switching? (1 pts) c. What is your recommendation? Why? (2 pts) d. What is the break-even sales increase? (2 pts)

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