Altoa, Inc. currently sells 3,100 units a month for total monthly sales of $124,000. The company is considering replacing its current cash only credit policy with a net 30 policy. The variable cost per unit is $22 and the monthly interest rate is 1.2 percent. What is the switch break-even level of sales?
A) 3,087 units
B) 3,106 units
C) 3,120 units
D) 3,184 units
E) 3,667 units
Correct Answer:
Verified
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