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Currently,The Toy Box Sells 465 Units a Month at an Average

Question 79

Multiple Choice

Currently,The Toy Box sells 465 units a month at an average price of $42 a unit.The company thinks it can increase sales by an additional 130 units a month if it switches to a net 30 credit policy.The monthly interest rate is 0.4 percent and the variable cost per unit is $21.What is the incremental cash inflow of the proposed credit policy switch?


A) $2,120
B) $2,730
C) $2,760
D) $2,810
E) $5,070

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