Your Current Sales Consist of 25 Units Per Month at a Price

Your current sales consist of 25 units per month at a price of $200 a unit. You are weighing the pros and cons of switching to a net 30 credit policy from your current cash only policy. If you decide to
Switch your credit policy you also plan to increase the sales price to $215 a unit. The monthly
Interest rate is 2 percent. What is the break-even default rate of the proposed switch?

A) 4.48 percent
B) 4.59 percent
C) 4.65 percent
D) 4.97 percent
E) 5.12 percent