Multiple Choice
Currently, Tyler Enterprises sells 350 units a month at a price of $42 a unit. The company thinks they can increase sales by an additional 100 units if they switch to a net 30 credit policy. The monthly interest rate is.4 percent and the variable cost per unit is $22. What is the incremental cash inflow of the proposed credit policy switch?
A) $1,480
B) $2,000
C) $2,200
D) $2,520
E) $4,200
Correct Answer:
Verified
Correct Answer:
Verified
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