Question: e bank vux. Is it worthwhile to open one? Explain. 2. (Collection Policy) Microbiotics currently sells all of its frozen dinners cash on delivery but
e bank vux. Is it worthwhile to open one? Explain. 2. (Collection Policy) Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales by offering supermarkets one month of free credit. The price per carton is $80 and the cost per carton is $70. a. If unit sales will increase from 10,000 cartons to 10,600 per month, should the firm offer the credit? The interest rate is 1% per month, and assumes all customers will pay their bills. b. What if the interest rate is 1.5% per month? c. What if the interest rate is 1.5% per month, but the firm offers the credit only as a special deal to new customers, while old customers continue to pay cash on delivery
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