Samsung is a producer of the iPhone. The variable cost is 350 dollars per unit, and the credit price is 950 dollars each. Credit is extended for one month, and you expect 3 out of every 100 orders will not be collected. Your required return is 1.50% per month. Assuming the customer becomes a repeat customer, the break-even probability of default is _____ %. (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16. Do not include percentage sign.)

Answer rating: 100% (QA)

To calculate the breakeven probability of default we need to find the probability at which the ... View the full answer