Question: The variable cost per unit is $75; the current price per unit is $100; and the monthly required return (cost of capital) is 1%. Thecompany

The variable cost per unit is $75; the current price per unit is $100; and the monthly required return (cost of capital) is 1%. Thecompany is considering granting credit of 1 month one time. With the new policy monthly sales will increase from 50 to 60 units. What is the probability of default for the new customer would make the firm break even when granting credit?

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